As per the latest release from the Brazilian Pepper Trade Board, the Pepper market activity in Brazil is starting slowly this beginning of the year. With many players still in holidays, the main sales has been directed to local market.
The trend may change from Monday 17th January 2011 onwards, when most of the industry is supposed to resume activities. Therefore prices did not move all the last week until Friday when a slightly bearish sentiment droped the price some U$D 100 per ton. Friday prices were asked at U$D 4,900 for ASTA, 4,800 for B1 and 4,700 for B2 FOB basis. Farmgate prices however stood at around U$D 4,400.
Rumors of some delays in shipments and/or possible defaults and short covered export contracts mantain the growers tough. The apearance is of some scarcity of raw material.
On the other side, the December crop in Espirito Santo which was expected to be above 5,000 tons, now is said to be of no more than 3,000 tons. All this information keep the trade tyied.
However on the other side of the world, Vietnam was downing the prices constantly all the week, finishing on Friday at U$D 4,750 and 4,500 for 550 faq and 500 faq respectively, for old crop material. According an Eurpoean report Vietnamian prices offered for March/April shipments of the new crop were even lower at U$D 4,450 for 550 faq and 4200 for 500 faq, a drop of almost 5%.Vietnam should trade more consistenly after the Thet holidays, however a bearish trend was signaled at least according this Dutch report.