In general, we are in for higher prices throughout this year. The key factors adding up are:
India, the biggest grower of Coriander, have seen a reduction in tonnage this year from the new crop ( Feb / March 2011 ). Reduction in tonnage produced is primarily due to less planting as prices last year in India were at near historical lows. It is estimated the crop size is 20% less than last year. As a result, Coriander is on fire in India. Split is trading at $1400 pmt CF, Whole 1% about $1800 CF and well cleaned ready for packing well over $2000 CF. If you consider than in May 2010 a split Indian was sold at $720 CF, this is almost a 100% increase in last 12 months. How long this climb from historical lows upwards can continue is difficult to say, but today we can say “Indian coriander is very firm”.
Eastern Europe: The situation as not changed from our last report in March. Farmers are asking traders for more money for this year’s crop ( due July / August ). Plantings done in Feb and March have been subject to poor weather and large acreages have been washed away and some farmers refusing to plant. Today in Romania, farmers are planting…in April..!! So this year’s crop is likely to be late ( end July early August ) and possibly smaller in tonnage.
If India goes up…it usually pulls up other origins…so it is likely Eastern European Coriander will be trading well of $1000 pmt for new crop August. Today it is difficult to find good quality Eastern European material and prices paid last week were over $1050 CF. As April to August goes by, expect poorer quality and higher prices.