Brazilian Pepper Crop Below 37-40 K Tonnes, No Flood Impact On Pepper Crop

The very unusual and very heavy rainstorms that hit a big part of Brazil this beginning of summer although caused a big number of deaths and destruction, did not impact on pepper plantations, which are located in the northern part of the country, between one thousand and two thousand km far from the disaster center, according to the latest updates from the Brazilian Pepper Trade Board.

Nevertheless, the expected pepper production is still below the traditional outputs around 37 - 40 thousand tons per year. The prices achieved last years however allowed all involved in pepper trade become some more wealthy and therefore not so desperate for cash. That might be one of the reasons of stability of prices for pepper of Brazilian origin.

It is true that American and European buyers do not show a big interest for buying at this moment but it is also true that apparently there is no sellers pressure to get orders. It seems that everybody is waiting for Vietnam to determine the path for prices in 2011.

If Vietnam decide that the trend will be descendant and for any reason they need cash, that will be the market path this year. However, if Vietnam will rule upwards, they will have no competitors, only followers. Must wait after that celebration. Prices this week were steady at $ 4900 / 4850 / 4750 for ASTA / B1 / B2 - Black Pepper and around 5100 for Cloves

During the last week, Pepper prices at origins remained unchanged except in Brazil and Vietnam, although pepper harvest in India has started. There is no selling pressure reported. Trading activity in India was calm during the week as indicated by trade volumes reported in the Commodity Exchange. Prices were relatively stable both in spot market, fob as well as in futures market. Pepper harvest in Vietnam is approaching, but offers are still limited.

Vietnam is facing tide up situation with holidays till mid February. As internal price are high, traders are cautious about immediate selling. At HCMC local prices stood at VND 90,500 per kg, increased from VND 88,500 last week.

In Lampung, prices were also stable. Offers are available but limited, since material from previous crop has exhausted. Pepper prices in Sarawak and Sri Lanka were also stable. Slight decrease was noticed in Brazil.

The market for white pepper is also calm. Activity is expected to increase when Vietnamese crop comes to market by March. Prices were stable at all origins.

(Source: http://www.indiainfoline.com/Markets/News/Commodities-Buzz-Brazilian-Pepper-Crop-Below-37-40-K-Tonnes-No-Flood-Impact-On-Pepper-Crop/3503546277)