Spice market update: weak demand hits all markets
May 20, 2020 at 4:45 PM ,
Der AUDITOR
Cumin
The cumin market is currently receiving pressure from various sides. On the one hand, market players are expecting higher arrivals, so that a lot of goods should be available in the coming days. This fact, combined with low demand and hardly any purchases, is causing prices to fall. This, in turn, means that farmers, who have so far held back their stocks in the hope of price increases, are still not prepared to sell at the current low prices. There is also little demand from the export side; only China is showing some buying interest, but this cannot support the market sufficiently. Grade A cumin currently costs USD 1,885 per metric tonne, and the trend is downward.
Coriander seeds
Traders report few purchase enquiries and a lot of available supplies, which has already led to price reductions. Some export demand is supporting the market, but how long this will continue remains uncertain. Domestic demand is currently very weak, partly due to the ongoing Ramadan and partly due to a sudden increase in the number of Covid-19 infected people in the Indian southern states around Tamil Nadu. Coriander, Eagle, 5% split is at USD 800 per metric tonne this week.
Turmeric
The recession on the turmeric market continues. Producers are having problems because many workers are unable to work due to the corona pandemic and the measures imposed as a result. Exports are also proving more difficult than usual. While many turmeric purchases are usually made in the period from March to June, everything looks different this year due to the pandemic. The harvest in Nizamabad and Duggirala is almost complete, so that the arrivals at the markets will increase soon. Demand from traders remains weak, so prices have declined slightly. Turmeric, salem, double polished is currently at USD 870 per metric tonne and thus USD 5 per metric tonne below last week's price.
Chilli
Although demand remains quite weak, chili prices are holding steady. Even though the rules have been eased during what is now the fourth lockdown extension in India, buyers are still hesitant. Traders expect prices to decline in the coming days. Currently, chilli, S4, stemless are trading at USD 2,150 per metric tonne.
Cardamom
No auctions have been held on the cardamom market since 19 March, and both domestic demand and demand from abroad remains weak, largely due to the ongoing lockdown. Market players do not expect any major changes in this regard in the coming days. The price of cardamom, 8 mm has dropped noticeably and is currently at USD 43,890 per metric tonne, which represents a price reduction of USD 2,005 per metric tonne compared to last week.
Black pepper
Despite low demand, prices currently remain at a stable level. Market players are pinning their hopes on the coming days, as the rules of the lockdown in Karnataka are to be relaxed and the market may pick up again somewhat. Currently, black pepper, 500 GL is trading at USD 4,860 per metric tonne.
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