mns spices report aug10

8/8/2019 MNS Spices Report Aug10

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BULLEMNS A

SPICESMARKET NEWS SERVICE (MNS)BI-MONTHLY EDITION


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Disclaimer

This report has been prepared without formal editing, as a service to exporters and in


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Market News ServiceSpices

Report prepared for ITCs Market News Service by: Peter Jaeger

Issue 3, august 2010

The Market News Service of the International Trade Centre UNCTAD/WTO (ITC) pr

and detailed price and market information on selected primary and semi-processed pparticular interest to developing countries and economies in transition. Regular acceinformation is vital to companies deciding when and where they should sell or buy international markets. MNS thus aims to serve as a market intelligence tool, to enable countries realize their full income potential through global trade expansion. MNS does broker and is exclusively an information service with the objective of improving market tand encouraging price and quality competition for the benefit of all market players.

MNS team of product specialists draws its information from a n etwork of corres

countries worldwide, collecting up-to-date data on wholesale prices paid for specifsupply and demand trends, and economic, climatic and legislative information that cashort-term market situation of particular products. MNS' information providers iimporters, exporters, manufacturers, wholesalers, and governmental organizacontinuously encourage and welcome new sources of information. Should you be inbecoming an information provider and contributing to MNS' efforts to improve market and facilitate trade, please contact us at [email protected] .

Copyright MNS/ITC 2009 All rights reserved

To subscribe to the report or to access MNS reports directly online, [email protected] or visit our website at: http://www.intracen.org/mns . For morereport, please contact MNS or the author at [email protected] .
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INDEX

MARKET TRENDS .............................................................................................................

STATISTICAL REVIEW OF EXPORTS .............................................................................

PRICES IN THE MARKET PLACE ....................................................................................Spices ...............................................................................................................................

PRICES IN THE MARKET PLACE ....................................................................................Herbs ................................................................................................................................

APPENDIX ..........................................................................................................................


5/23

Market Trends

Little news in the market with most new cropscoming in as expected. Garlic is aparticularly notable exception here, and theshortfall of the Chinese crop is causingconsiderable concern in the market. TheChinese dehydrators are unable to access

sufficient material and domestic prices forfresh product have risen to the alarm of thegovernment.

There are two points of interest to the widerspice trade here.

The first concerns the increasingconcentration of supply in a single origin or

region. The global market for dried garlic isheavily dependent on exports from China andyet China will be a net importer this year.This may benefit the growers in India, butIndia is typically an importer from China, andso the Indian domestic market will undergo astructural change too. Meanwhile the USA,which once had a major garlic industry of itsown centred on Gilroy in California that

succumbed to the weight of lower pricedChinese imports, is now left with a shortfall inits supply.

In this issue of the newsletter (pages 6-11)we have charted the exports of a number ofspices by origin over the past five years. Youwill note the concentration of supply in anumber of the products.

The second point from the gto the impact of speculation a part in boosting domestic pChina. The government feintervene at one point. Ohowever, national governme

not so easy: we saw this r2008 price hikes in food coa potential shortfall was ecombination of prospeculation.

The commodity marketsappealed to speculators, anare necessary in the Futures

they bring liquidity that allophysical commodities to shedges. The physical peppthe clove demand have aspeculation too with a dseasonal crops there have beto exploit the temporary imband demand, without, it shoobvious benefit to the w

number of spices are quispeculative activity in thatsupply are relatively small afixed by the absence of any s

Perhaps the risks can bencouraging and supportingproduction.

PepperSince our last report, markets firmed initiallybefore settling to flat line as Ramadan gotunderway Trading has been thin throughout

physical stocks. It is not cleft in Viet Nam and, available Viet Nam is expen


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Product Origin Grade Price ( USFOB pricesWhite Pepper Brazil Belem

Indonesia FAQ Malaysia FAQ China Haikou Vietnam FAQ

Producer pricesBlack Pepper Brazil Para

Sri Lanka

Indonesia Lampung 3India Cochin Vietnam HCMC Malaysia Kuching

FOB pricesBlack Pepper Indonesia ASTA

Brazil ASTA Vietnam 500g/lMalaysia ASTA India ASTA

CardamomPrices remain very high.

CorianderThere are early hints that the availability ofcoriander may fall below expectations withreduced yields in Eastern Europeanproducers. The demand side is holding back

and trading is thin but expected into Quarter 4. harvest was delayed by rain.

Garlic

The Chinese crop of fresh garlic hasemerged as well below typical levels, leavingprocessors short of material for dehydration.This follows a difficult winter and heavy rainsin the spring and crops are held by the tradeto be 40% down. China will be a net importerthis year and the shortfall is having a

of August 2009. The glheavily on supplies from Chsubstantial US production,price pressure from Chineseinsufficient to meet North AThere are some carry overbut traders believe that thes


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Mace & NutmegFurther gains in prices. Poor weather is heldresponsible for the low outturn in the cropearlier in the year in South Asian and Far

Eastern producing areas. running to the end of the some respite.

PimentoThe Ministry of Agriculture & Fisheries inJamaica comments as follows:

Supply - The 2010 pimento crop in Jamaicahas been severely affected by droughtconditions during the last quarter of 2009 intothe first quarter of 2010. The crop isexpected to produce about 50% of normaloutput. Exportable supply is estimated at 600to 700 tonnes. Coupled with low domesticinventory, supplies of Jamaican pimento areexpected to remain tight until the 2011 cropcomes around. From all indication, the 2010crop appears to mimic 2000 and 2001 crops.Currently, exporters are strategically rationingsupplies to ensure market presence into2011.

Price Under the tight suprice on Jamaican pimento h10-year low of USD 2,January 2010 to USD 4,0August 2010. During thecrops, (which mirror the 201Jamaican pimento ranged 4,700/mt and 5,100/mt FOB

Structural Changes - Ongopimento inventory managfrom the government to privinject uncertainty and spJamaican pimento market term.

PoppyWas low priced, but it seems that some European producers are holding back from prices have moved up in response.

SesameA flurry of buying was reported in India astraders moved to secure old crop even

though the new crop is closefor a gap between the two cr

TurmericDomestic prices in India have remained steady at their very elevated levels. Futres pregistered strong gains lately.


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Statistical Review of ExportsThe following pages present chartsillustrating the recent exports of 12 majorspices.

The below data is taken from the UNCOMTRADE database and for the most partdata up to 2009 is available. More spices are

recorded in the COMTRADE database butonly a selection of spices are shown here.

It is interesting to note that only ginger andCapsicums show an upward trend in trade;the steady tone of the market in other spices,

see for example nutmeg or cpoint to a supply side shortalimit on demand.

Only vanilla still lingers at tprice range, and supplies demand. There are serio

vanilla over fungal attack of perhaps this will change tbut, as yet, stocks at the imrotated rather than drawn dow


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Market News Service

Spices

Global trade in nutmegs averages 12,00

Indonesia, where nutmeg is native, dom

Sri Lanka is an important supplier to Inot been reported

Grenadian exports are now minimal

Global trade in mace has halved.

Indonesian exports are dramatically lower

Global Exports of Nutmeg Top 5 Exporters

0

5,000

10,000

15,000

20,000

2005 2006 2007 2008 2009

T o n n e s

Sri LankaGrenadaBrazilIndiaIndonesia

Global Expo

0

3,000

6,000

9,000

2005 2006 2007

T o n n e s


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8Market News Service

Spices

Global trade in turmeric is dependentIndia.Exports are fairly stable at about 60,000

Madagascar is the major origin for vanilla.

Other significant supplies are available from Uganda, Indonesia and India.

Uganda has not reported exports for 2009, but trade sources report exports of atleast 200 tonnes.

The bumper outturn in Madagascar around 2006 and 2007 is readily seen

Prices at this time were pushed down to the floor allowing significant stocking by theimport trade

Global Exports of Turmeric Top 5 Exporters

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2005 2006 2007 2008 2009

T o n n e s

IndonesiaEthiopiaChinaViet NamIndia

Global ExpoTop 4 E

0

1,000

2,000

3,000

4,000

5,000

2005 2006 200

T o n n e s


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Market News Service

Spices

Caraway seed trade is rather variable

Finland is contributing less to the gloCanada are increasing.

Global trade in coriander seeds is quite stable at about 90,000 tonnes per year

The major suppliers are India and Bulgaria

Output from India has increased steadily over the past four years

Ukraine exports have not been reported yet for 2009

Global Exports of Caraway Seeds Top 7 Exporters

0

5,000

10,000

15,000

2005 2006 2007 2008 2009

T o n n e s

PolandGermany

IndiaNetherlandsEgyptCanadaFinland

Global Exports ofTop 10

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2005 2006 2

T o n n e s


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Spices

Viet Nam is the major exporter of black

Exports from Viet Nam have not been the same order as 2008.

This would leave supply well belowdrawdown of stocks.

The global trade in ginger is expanding

China is the leading supplier

The global market is very dependent on the Chinese market; the balance of supply tothe dehydrators as well as the demand forms the fresh ginger trade.

Global Exports of Pepper, whole Top 7 Exporters

0

50,000

100,000

150,000

200,000

250,000

2005 2006 2007 2008 2009

T o n n e s

Sri LankaMexico

MalaysiaIndiaBrazilIndonesiaViet Nam

Global ExpoTop 9 E

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

2005 2006 2

T o n n e s


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Spices

Dried capsicums both for heat as care the most important traded spice by v

India leads this trade, but China has gai

The volume of global trade has increas

True cinnamon is exported from Sri Lanka whose exports for 2009 are not reported

True cinnamon accounts for about 12% of the total international trade of these twobark products

Indonesia leads the supply of cassia from Sumatra but exports have been in declinefor the past three years.

Viet Nam and China are also important origins for cassia but the flavour profile differsnoticeably form the more cinnamon-like Indonesian cassia.

Global Exports of Capsicum Top 7 Exporters

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2005 2006 2007 2008 2009

T o n n e s

TunisiaSpain

MexicoMalaysiaPeruChinaIndia

Global Exports of CinnaTop 7 Exp

0

20,000

40,000

60,000

80,000

100,000

2005 2006 2007

T o n n e s


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Market News Service

Spices

Prices in the market place

Grade = quality, grade, origin or other price related detailsPLEASE REMEMBER THESE ARE ONLY PRICE INDICATIONS

All prices are quoted in US$/Kg

USA JAPAN EUROPE

PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE GRADE This

Week3 Month

ago1 Year

AgoThis

Week3 Month

ago1 Year

AgoThis

Week3 Month

ago1 Year

Ago

Black Pepper

Spot $4.50 $3.88 $3.37 Sarawak $5.00 $4.70 $4.10 FAQ 500g/l $4.47 $3.56 $3.08

TellicherryExtra Bold $5.51 $4.19 $4.19 Mal MG-1 $5.40 $4.40 $3.75 FAQ 550g/l $4.65 $3.70 $3.23 MG1

NearbyDelivery $4.52 $3.86 $3.37 Lampung

SteamTreated550g/l n.a. n.a. n.q. FAQ V

Brazil

White Pepper

MuntokFAQ spot $6.28 $5.62 $5.40 Muntok n.q. n.q. n.q.

Muntok FAQspot $6.30 $5.60 $5.20 FAQ

Muntoknearby Brazil Brazilian spot n.q. $5.10 $4.70

Sarawak $7.50 $6.60 $6.80 Steam treatedMuntok spot n.q. n.q. $4.50

Vietnam $6.35 $5.40 $4.96 Vietnam $6.43 $4.93 $4.45

AniseedWholeChina star $6.83 $6.50 $5.50 Syrian 1% $4.30 $6.15 $6.50

Syrian $6.83 $7.72 $6.61 FAQ n.q. n.q.

CarawayCanadian $2.69 $2.69 $2.47 FAQDutch $2.69 $2.69 $2.47 Dutch $2.35 $2.45 $2.63

Cardamom

FancyGreen $37.48 $37.48 $18.65 India AGS1 $30.00 $27.00 $17.50 MYQ $21.00 $20.50 $11.00 No 1

MixedGreen $10.58 India AGS n.q. n.q. n.q. Bold $28.00 $28.00 $15.60 No 2


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Spices


USA JAPAN EUROPE


Week3 Month

ago1 Year

AgoThis

Week3 Month

ago1 Year

AgoThis

Week3 Month

ago1 Year

Ago

Cassia

Korintji A3.00ML/SVO

$1.59 $1.50 $1.28 China whole $2.45 $2.00 $1.90 Korintji B Br &Cl $2.35 $1.40 $1.00

Vera C/WAA $3.42 $3.42 $2.36 China broken $2.25 $1.80 $1.70 Vera AA $2.25 $2.15 n.q. China b

Vietnamese5ML/SVO $3.13 $3.13 $3.13

VietnamQNV $2.40 $2.20 $2.10

CeleryIndian spot $1.81 $1.85 $1.37 Indian n.q. n.q. n.q. Indian 99% $1.55 n.q. $1.50

ChiliIndian S4 $2.54 $2.54 $2.43 IndianSannam n.q. n.q. n.q. S4 grade n.q. n.q. n.q.

Indianpowd

Africanfukien $3.97 $3.97 $3.97 Chinese n.q. n.q. n.q.

Malawi BirdsEye n.q. $6.20 $6.30

Pakistpowd

CinnamonCeylon H2 $8.82 $7.28 $7.28 Sri Lanka C5SP $19.50 $14.00 $14.00

Sri Lanka c5cut $9.95 $9.00 n.q.

Cloves

Sri Lankahand picked $9.37 $9.37 $9.37 Madagascar $5.50 $5.50 $5.40

Comores / Madagascar $5.50 $4.75 $4.70

Zanzibar $6.06 $6.06 $5.51 Zanzibar n.q. n.q. n.q.

Indo stems $1.10 $1.10 $1.10

CorianderBulgarian $1.43 $1.43 $1.30 98% EastEuropean $1.08 $1.05 $0.95 Indian

Canadian $1.61 $1.61 $1.54

CuminTurkish n.q. n.q. n.q. Turkish 98% n.q. n.q. $3.05Syrian $3.73 $3.09 $2.89 Syrian 99% $3.30 $2.56 $2.85 Iran

Indian $3.73 $3.09 $2.89 Indian n.q. n.q. n.q. Indian 99% $3.30 $2.80 $2.82 Indian

DillIndian $1.76 $1.76 $1.50 Indian 99% $1.60 n.q. n.q.

Fennel FancyEgyptian $2.60 $2.09 $1.87 Egyptian99% $1.78 $1.53 n.q.


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Market News Service

Spices


USA JAPAN EUROPE


Week3 Month

ago1 Year

AgoThis

Week3 Month

ago1 Year

AgoThis

Week3 Month

ago1 Year

AgoIndianASTA $2.54 $2.38 $2.20 Indian n.q. n.q. n.q. Indian 99% $2.50 $2.28 $2.13 Indian

Fenugreek Turkey $1.10 $1.10 $1.10 Indian 99% $0.91 $0.87 $0.83 Indian

GarlicCh. Powder $4.08 $2.58 $1.46 Flakes n.q. $2.60 $1.90Ch. Grand $4.30 $2.80 $1.61 Powder n.q. $1.60 $1.15

Granules n.q. $2.10

Ginger

Cochin $6.28 $4.96 $3.42 Cochin n.q. $5.10 $4.20 Cochin $4.90 $4.35 $2.70Chinesesliced n.q. n.q. n.q.

Chinesesliced n.q. n.q. n.q.

Chinesesliced $4.50 $4.50 $2.36 Chinese

Chinesepeeled $5.25 $4.96 $2.65

Chinesewhole n.q. n.q. n.q.

Chinesepeeled $4.78 $4.50 $2.32

Nigerian n.q. n.q. n.q. Nigerian $4.00 $4.00 $1.70

Mace

Siauw No 2

siftings$34.00 $18.19 $11.57 Siauw whole $33.00 $18.00 $15.50 PNG Whole $24.65 $17.50 $11.45

Indonesian $29.50

Mustard

No 1 YellowCanadian $1.43 $1.43 $1.50

CanadaYellow $1.33 $0.96 $1.20

Brownoriental $1.37 $1.37 $1.43 Australian Indian

India n.q. n.q. n.q.

NutmegW.I. ABCDs $13.67 $12.46 $10.14 Indo 110's $20.00 $14.00 $9.95 IndonesianSS $15.65 n.q. $10.05

E.I. cracked $14.88 $12.02 $9.37 WI 110's n.q. n.q. n.q.ABCD $16.00 $12.50 $10.65

OnionEgypt pow n.q. n.q. n.q. Powder $1.99 $1.99 $1.99

India pow $2.43 $2.20 $2.40 Flakes n.q. n.q. n.q.

Paprika

Spanish 120ASTA $4.63 $4.63 $4.63

Spanishvisual n.q. n.q. n.q.

Spanish 80ASTA $2.70 $2.70 $2.70


18/23


Spices


USA JAPAN EUROPE


Week3 Month

ago1 Year

AgoThis

Week3 Month

ago1 Year

AgoThis

Week3 Month

ago1 Year

Ago

Hungarian $6.61 $6.61 $6.60 Hungarian100 ASTA n.q. n.q. n.q.

120 ASTA n.q. n.q. n.q.Peru HT90

ASTA n.q. n.q. n.q.

PimentoMexican $4.28 $3.79 $3.09 Mexican $4.00 $3.80 $3.20 Mexican $3.40 $3.60 $2.80Guatemala $4.28 $3.79 $3.20 Guatemala $3.78 $3.59 $2.90Jamaica $4.28 $3.97 $3.97 Jamaica n.q. n.q. n.q. Jamaica $3.83 $3.61 $3.60

PoppyDutch $1.76 $1.59 $1.74 Dutch n.q. $1.26 $1.60

Australian $1.92 $1.65 $1.98 Turkey n.q. $1.64 n.q.

Sesame

IndianNatural $1.83 $1.59 $1.90

CentralAmericanhulled

n.q. n.q. n.q.

Indianhulled $2.18 $1.87 $2.14 Indian Hulled n.q. n.q. $2.05 Indian H

Turmeric

Alpey 5.25curcumin $5.07 $4.96 $2.65

Madrasfingers $4.20 $4.20 $3.10

Madrasfingers n.q. n.q. n.q.

Alpey 5.0curcumin n.q. n.q. n.q.

Alleppeyfingers n.q. n.q. n.q. Powder n.q. n.q. $2.10

Indianground n.q. $4.08 n.q.

IndianRajapuri

n.q. n.q. n.q. Madraspowd

Vanilla ! Bourbon $28.00 $28.00 $28.00 Bourbon $25-30 $25-30 $25-30

Non-bourbon $20-25 $20-25 $20-251 Vanilla the prices given here are indicative of the value of bulk sales at origin. Selling prices within Europe are substantially higher as they reflect much smaller quantities that ma


19/23

Monthly average prices in the domestic markets are reported by the Spice Board of the Govof India up to August 2010

USD/kgChange Aug-10 Jul-10 Jun-10 Aug

Black Pepper 4.25 4.12 3.50 Cardamom Small 29.07 32.07 32.47 1Cassia 2.18 1.97 1.85 Chili 0.97 0.96 1.10 Cloves 7.10 7.14 6.65 Coriander 0.67 0.67 0.61

Cumin 2.79 2.63 2.30 Fennel 2.60 2.56 2.49 Fenugreek 0.65 0.65 0.62 Garlic 1.68 1.17 1.14 Ginger 4.51 4.48 4.34 Turmeric 4.13 4.18 4.27


20/23

Prices in the market place

All prices are quoted in US $/Kg

USA PRODUCT GRADE PRICE GRADE

ThisWeek

3 MonthAgo

1YearAgo

ThW

Basil

Egyptian FAQ $2.43 $2.31 $2.25 Egypt $

Egyptian Extra Fancy n.q. n.q. n.q. Egypt fines

Bay leaves

Turkish Fancy n.q. n.q. n.q. FAQ

Turkish semi select $3.85 $3.75 $3.75 Turkish

semi-select$

Chervil German

Dill weedEgyptian $3.20 $3.20 $3.20 German

Californian $9.05 $12.02 $12.02

MarjoramSpot $2.88 $2.98 $3.00 Egypt ASTA $

MintPeppermint $5.07 $5.07 $5.07Spearmint $4.96 $4.96 $4.96 Egyptian

Oregano

Turkish 30# Ex Fancy $3.42 $3.25 $2.98 Turkish $

Turkish FAQ $2.40 $2.40 $2.31

Turkish 30# Fancy $3.06 $3.00 $2.75

ParsleyIsraeli $6.83 $6.83 $6.83 European2mm

Morocco $1 65 $1 65 $1 65 Spanish $


21/23

All prices are quoted in US $/Kg

USA PRODUCT GRADE PRICE GRADE

This

Week

3 Month

Ago

1Year

Ago

Th

WSpanish Extra Fancy $3.97 $3.97 $3.97

Moroccan $2.98 $2.98 $2.98 Moroccan $


22/23

Appendix

AbbreviationsIndo = Indonesia# = refers to mesh numberFAQ = Fair Average QualityHU = Heat UnitsASTA = American Spice Trade AssociationWI West IndiesDel = deliveryImp = ImpuritiesASTA (paprika) = refers to colouring units as determined by ASTA methodsm = smallspec. = specificationESA = European Spice Association.USD = United States DollarsG/l = grams per litreCh = ChineseS.A. = South AfricaMYQ = Mixed Yellow QualityBr & Cl = Broken and cleaned

Rates of Exchange 26th February 2010

Currency Code Units/1 USD Units/1 EUBahraini Dinar BHD 0.3784 British Pound GBP 0.6544 0Chinese Yuan Renminbi CNY 6.8369 9.Egyptian Pound EGP 5.5238Indian Rupee INR 46.3563Indonesian Rupiah IDR 9,389.7 12,6Japanese Yen JPY 89.2507 120Kuwaiti Dinar KWD 0.29 Malaysian Ringgit MYR 3.4073 4Pakistan Rupee PKR 85.3007 115.

Saudi Riyal SAR 3.7556 Singapore Dollar SGD 1.411 1Sri Lanka Rupee LKR 114.683 154Swiss Franc CHF 1.0841 1Thai Baht THB 33.1842 4Utd. Arab Emir. Dirham AED 3.6737 4


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mns spices report aug10

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