World pepper prices dropped sharply last week due to the sell-off activities, when Malaysia and Indonesia entered the harvest.
Spot prices in Kochi market (India) eased to Rs 36,500 per 100 kg from Rs 37,913 a week ago. India's export pepper also dropped to $ 7,125 / ton, from Rs 7,400. Vietnam's export pepper price was stable at 6,800-6,900 dollars / ton. There is no Lampong pepper offered for export. The Indonesian market is expected to start active in July, when new pepper is available in the market. US customers bid $ 3.18-3.20 / lb.
Malaysia sporadic pepper is present in the world market, with an expected production of 12,000-15,000 tons. Pepper from Indonesia is also expected to be available in the market in July, and black pepper production this year is expected to reach 22,000 tons. Traders said that both countries will sell the old pepper at a discounted price before there is a new crop in the market.
Demand is not high right now, and buyers are not hoarding much.
Vietnam's pepper exports in the first three months of 2012 were very active despite the US reduction in imports. In 3 months, Vietnam exported 31,063 tons of pepper, up 23% over the same period last year. Germany and the United States reduced import of pepper compared to last year, but exports to Arab countries increased sharply.
There are many predictions about Vietnam's pepper output. The chairman of the World Spice Organization (WSO), Philip Kuruvilla, is estimated to reach 140,000 tons. “The market is very quiet and India is selling at a higher price than other origins,” he said. The supply in Vietnam market is quite large and we need to reduce prices to export. ”
According to the International Pepper Organization (IPC), Vietnam's pepper output this year will reach 135,000-140,000 tons, higher than 100,000-110,000 tons previously forecast.
India imported nearly 1,000 tons of pepper in March. Traders said exports from India were declining and domestic demand was also down due to the hot weather in the north of the country.
IPC forecasts global pepper production in 2012 will increase by 7.2% thanks to increased production in Vietnam and Indonesia. Production this year will reach 320,000 tons, compared with 298,000 tons in 2011. Global pepper exports will increase to 246,000 tons, from 242,000 tons in 2011.
Indonesian pepper output is forecast to increase to 41,000 tons, from 33,000 tons last year, while Malaysia will increase to 26,500 tons from 25,600 tons.
Indian pepper production is forecast to decrease by 5,000 tons to 43,000 tons due to bad weather, decreased acreage and reduced yields. Therefore, any increase in exports can support prices in the medium and long term.
The Indian Spice Commission said exports between April 2011 and January 2012 increased 49% to 22,300 tons, from 14,950 tons in the 2010-11 crop.
Pepper imports into the US during the April-November period increased by 1.58% to 64,276 tons, compared with 63,274 tons in the same period of 2010-2011.
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