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Market Report

20 Oct, 2020

Indonesia cloves crop is going to finish in this month, its price hit a record low this season due to the pandemic that causes less operation of cigarette companies in Indonesia and less import demand from India. Crop size in Indonesia is about 80,000 tons and it was mainly consumed locally by cigarette companies, this year, the volume is mainly for export so there is a lot of pressure on the price of Indonesia cloves itself as well as of other origins. We expect cloves price shall be firm when the crop finishes, farmers are not happy with this price level and are ready to hold cargo further, demand for speculation is also good at this price level.

Madagascar cloves crop is coming currently, the crop is expected as a bad crop with volume around 10,000 tons against 18,000 tons last year. Madagascar cloves price is still higher than Indonesia price as the crop just started, material has high moisture and more baby cloves. Therefore, Indonesia cloves is still the best option so far.

Vietnam pepper market was quiet recently but market is firm up yesterday supported by demand from China. Till end of Sep, Vietnam exported about 220,000 tons of pepper (and imported about 25,000 tons from Brazil, Indonesia and Cambodia), there is 3-4 months more till the new harvest so pepper holders have no selling pressure. The 2021 crop is also expected as a bad crop due to unfavorable weather and less investment into pepper farms during recent years.

Vietnam star anise is really hot item recently, its price has been sky-rocked since Sep thanks to heavy demand from China. The Autumn crop is over and there is very limited availability on the market, asking price is still on the uptrend.

Vietnam cassia market is also strong. The arrival of Autumn crop isn’t as good as expected due to heavy and continuous rain. A lot of exporters are in short position due to speculating sell. We expect market shall be strong and up further due to less arrival this season.

Sri Lanka Ceylon Cinnamon is in the last stage of this season, cinnamon price has been firmed up throughout the season thanks to good demand. Price of Madagascar Ceylon Cinnamon is also strong because of good demand and slow arrival.