19th July 2013
See below a recent clove report from a European trader:
“Market is steady in spite of relative quietness.
Anyway this can be the calm time before the storm comes.”
Why a “storm” ?
Simply because my Indonesian contacts keep on reporting that crop is short down there, and they show signs of interest bot both Mada current crop material and Comoros new crop. In the meantime Mada domestic is expensive, Sri Lanka looks cheap but quality is a disaster according to Indian trade, Brazil is almost finished and Mada new crop, which will be definitely short too, is not coming before October from South East.
Comoros crop opens, slowly at rather high levels too and according to what our agent reports from Mutsamudu, I am not that sure market will decrease a lot when flow of cloves will be better, IF demand is strong, which may happen.
Current offers: EUR 10.10 / kg CIF, June / 15th July, usual terms and 25 kg bags