Pepper markets are firming. The obvious leader setting the tone is, Vietnam. Over the last few days, Chinese buyers have been pushing to buy black pepper for immediate delivery – certain growing areas have had unusual rains for the last 8-10days which is slowing down some of the harvesting – the weather forecasters advised that these rains might continue for another week or so. – the VND has regained value viz USD of about 3-4% over the last couple of weeks – this has all contributed to an increase in the local market value of FAQ black, from about 89,000VND from last week to 95,000 VND + today ,with even higher quotes being mentioned. Farmers are holding material back as much as possible , as they expect higher prices in the future. It is reported that about 25/28,000mt have been harvest so far. India has been creeping up as well on the exchanges with limited newcrop arrivals. Viet farmers seem to be much wealthier than in previous years due to the unusual high prices of virtually all the commodities they are involved in farming now. It appears that Indian farmers as well are holding back material. Indonesia remains very steady with slight upward movement but do not expect them to be aggressive at all due to limited carryover stocks and rumored poor 2011 crop. Brasil trading a few parcels here and there of heavy pepper for decortication but generally are withdrawn. Buyers are showing interest for Brasil newcrop (A/Sept) shipment but sellers totally unwilling though 2011 crop prospects look better than the did for 2010. Buyers both in USA and Europe are getting a little nervous as they are not seeing their expected downturn in Viet prices as the newcrop is being harvested. This might force them to step in very shortly. White pepper is drifting within narrow ranges for both Muntok and Viet.

 

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Andrew Barker

An international food broker, with main activity in spices and herbs.