Commodities:  Oil & Oilseeds Feed & Meal Grains Pulses Spices Sugar & Gur Fibre Plantation Others
You Are Here: Home > Commodities > More News
Articles
More Articles...
WPB Week #01/19, 31 December 2018 -04 January 2019

WPB Week #01/19, 31 December 2018 -04 January 2019

04/01/2019

 

The end of 2018 and start of 2019 were marked with mixed response from the market. Pepper prices showed increasing trend in all producing-countries except in Viet Nam and Sri Lanka. At the farm level, the prices of black pepper and white pepper in India, Indonesia, and Malaysia experienced a sligh 1% increase compared to the previous week. The price increase was influenced by the local currency which strengthens against the US Dollar. In Viet Nam, the price of black pepper was recorded to have declined by 2%, and white pepper also declined but was not significant. A significant decline occurred in the price of black pepper in Sri Lanka. The price of black pepper in Sri Lanka declined by 6% compared to last week. A factor in domestic political instability was the contributing factor behind the decline in pepper prices in Sri Lanka.

 

The average prices of black pepper at farm level this week were reported to be IDR 33,000 per kg in Indonesia, VND 51,500 per kg in Viet Nam, RS 366 per kg in India, RM 9.4 in Malaysia, and LKR 589 per kg in Sri Lanka. Furthermore, the average prices of white pepper at the farm level were reported to be IDR 53,000 per kg in Indonesia, VND 87,500 per kg in Viet Nam, and RM 15.8 per kg in Malaysia.

 

FOB prices in producer countries also experienced a trend similar to prices at the local level. Price increases occurred in India, Indonesia and Malaysia. Nearing the new crop season in Viet Nam which added further pressure, the FOB prices of black pepper and white pepper in Viet Nam were recorded to have decreased by 2% and 1% respectively. Furthermore, spot prices in New York this week were reported stable, there were no changes compared to the previous week.

 

PROJECTION OF PRODUCTION AND EXPORT OF PEPPER BY INDIA, INDONESIA, MALAYSIA, SRI LANKA, VIET NAM, BRAZIL, AND CHINA IN 2019:

 

In 2019, Vietnam's pepper production is projected to remain the highest compared to other pepper-producing countries. Viet Nam is projected to produce 175,000 MT of black pepper and 25,000 MT of white pepper, so the total production of Viet Nam is projected to reach 200,000 MT. Compared to the previous year's estimate, Viet Nam's production is expected to decline slightly which could be contributed to the fact that Viet Nam isn�t looking to expand its pepper cultivation area, according graovenment officials. This year Viet Nam will focus on improving the quality of pepper rather than the quantity of production. Viet Nam will focus on reducing the use of synthetic chemical pesticides, and try to develop organic pepper plantations.

 

Brazil is projected to become the second largest pepper-producing country after Viet Nam. In 2019, Brazil is expected to produce 64,000 MT black pepper and 3,000 MT white pepper, so that Brazil's total production in 2019 is projected to reach 67,000 MT. Similar to Viet Nam, Brazil's production is also expected to decline compared to the previous year's estimate. The decline is estimated because some pepper gardens in Brazil have been quite old plants, and some gardens with young plants still need more time to produce.

 

Indonesia is projected to occupy the third position after Viet Nam and Brazil in pepper production. In 2019, Indonesia is projected to produce 25,000 MT of black pepper and 40,000 MT of white pepper. Compared to the previous year's estimate, Indonesia's production in 2019 is also projected to decline. The decline in production is due to the fact that many gardens in the pepper production center are not in good condition due to lack of care. Farmers are a little less eager in maintaing their pepper farm because prices have continued to decline since the pastt few years.

 

Pepper production in India this year is expected to decline compared to the previous year's estimate. In 2019, India is projected to produce 45,500 MT of black pepper and 1,500 MT of white pepper. The decline in production in India is caused by the many gardens in the center of pepper production such as in Kerala were damaged due to floods. Floods in Kerala cause many plants to be washed away and caused a less favorable microclimate. Humid conditions after flooding triggered the emergence of various diseases in pepper plants.

 

Production of black pepper in China is estimated to reach 33,000 MT consisting of 1,000 MT of black pepper and 32,000 MT of white pepper. Thus records a decrease of 6% in the yearly total production as compared to the previous year.

 

In 2019, black pepper production in Sri Lanka will reach 26,000 MT and white pepper production is estimated to reach 700 MT, so total production this year is projected to reach 26,700 MT which records an increase of 44% opposed to the estimation number for 2018.

 

Pepper production in Malaysia is expected to increase from the previous year. In 2019, Malaysia is projected to produce 17,872 MT of black pepper and 6,128 MT of white pepper, so that total pepper production in Malaysia is estimated at 24,000 MT. A number of pepper production centers in Malaysia are heading to peak production so production in Malaysia has increased slightly this year.

 

Exports of pepper in 2019 will also be led by Viet Nam with export projections reaching 215,000 MT. Exports by Viet Nam are projected to be greater than their production because Viet Nam has quite significant stock carry forwad from the previous year. Export quantity after Viet Nam was followed by Brazil (57,600 MT), Indonesia (37,000 MT), Sri Lanka (20,200 MT), India (17,000 MT), Malaysia (14,000 MT), and China (1,000 MT).

 

http://www.ipcnet.org/admin/data/news/mx1901.jpg

 

Source: http://www.ipcnet.org/

Technical Research
Prices
Wednesday, January 16, 2019
ExchangeCommodityContractOpenHighLowClose
MCXAluminiumJan19131.5133.15130.25131.2
MCXAluminium MiniJan19131.5133.1130.3131.2
NCDEXBarleyJan191943194319431943
MCXCardamomJan191634164916201641.4
More Futures prices..