Vietnam pepper market likely to be more active this week onwards

Vietnam, which is the largest producer and exporter of Black Pepper, was closed for their New Year holiday last weekend and will commence work only on 8th February, latest updates from Brazilian pepper Trade Board said.

It would then open prices of the new crop and the new crop quantity would then be more accurately predictable. Vietnam pepper prices have been very stable for the past two months around USD 4500 FOB Levels for 500 g/l grade with very little demand or trades taking place with buyers only covering their basic requirements because of the fear of market coming down when new crop commences in Vietnam.

There were rumors about some forward trades happening from new crop around USD 4200 pmt to 4300/- pmt fob levels for March and April shipments but this report cannot be confirmed.

In the past one week there was a little more demand than usual and business happening for high quality BP such as ASTA grades and Machine Cleaned because supply of such grades is very limited because the new crop BP will be more lighter in weight between 300 g/l to 500 g/l only at the commence of the new crop.

The Indian Cochin Exchange price for Pepper too have been very firm and the new crop of India too has started coming into the market at USD 4850/- pmt on fob basis for 550 g/l.

Brazil too have now almost finished shipping from their new crop and prices are high around USD 4900/- fob for B1 Grade.

It would be very difficult at present to predict the prices of Black Pepper from new crop because this year it would depend on the supply and demand factors and which really comes earlier that is the demand or supply because international markets also have remain uncovered for the past three months so demand could come in before supply firming up prices.

We would watch the market very closely and keep you informed of further developments on the market situation of Black Pepper. – Stoxplus.com

Tags: Vietnam Pepper, Vietnam pepper exports