Spice market update: downward trend on the chilli market
June 5, 2020 at 8:28 AM ,
Der AUDITOR
Cumin
Market players report that the available quantity of high quality cumin on the market has decreased significantly. As demand is now increasing again after a longer break caused by the coronavirus, prices are also rising slightly. Grade A cumin is currently traded at USD 1,890 per metric tonne.
Coriander seeds
Due to weak demand and steadily increasing arrivals, coriander prices continue to decline. This does not only apply to spot purchases, futures contracts are also trading lower. This is due to the high supply as well as to the crop estimates, which give hope for a good crop. Coriander, Eagle, 5% split costs USD 770 per metric tonne this week, which is a price reduction of USD 20 per metric tonne compared to last week.
Turmeric
Sales in the local markets of Nizamabad and Telananga have resumed this week after being closed for more than two months due to the countrywide lockdown imposed due to the corona virus. Demand from the spice industry is also slowly improving but is not yet able to support the market. On the dealer side, business is still slow, so prices in the turmeric market continue to follow a slight downward trend. Curcuma, Salem, double polished is currently at USD 845/mt.
Chilli
Prices for red chillies are falling steadily, which continues to encourage farmers to store their supplies rather than offer them for sale. Overall, little has happened in the chilli market in recent months as the Covid-19 pandemic has had a noticeable impact. Domestic consumption has declined as a result of the lockdown, and exports were also extremely poor in April and May. Meanwhile, life is coming back to the export market, but as many exporters are currently suffering from a shortage of money, activity remains limited. Prices for chilli, S4, stemless are at USD 2,170 per metric tonne.
Cardamom
The cardamom auctions, which resumed last week after an 80-day break, got off to a promising start. Among other things, market players reported good quality of the goods and a higher participation of traders from Tamil Nadu. The rainy weather conditions, if no unforeseen incidents occur, could ensure a very good crop next season. Positive news is also coming from exporters, who are reporting increased demand from overseas. However, the market has not yet returned to its former condition, so price cuts still take place. Cardamom, 8 mm currently costs USD 41,890 per metric tonne.
Black pepper
Indian pepper farmers are reporting rising commodity prices since Chinese buyers have resumed their orders after a long pause. According to market players, prices in Vietnam are also rising, which is also attributed to increased demand from China. The price of black pepper from India, 500 GL is at USD 5,005 per metric tonne, which is a rise of USD 55 USD/mt from last week's price.
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