Spices Insights for November 02, 2016

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  • Spot Jeera, Turmeric and Coriander markets were closed today for ongoing Diwali festival holidays and will resume trading tomorrow.
  • Black Pepper prices have been trading steady to lower at the major benchmark markets of India amid subdued demand.
  • Availability of imported material in the domestic markets coupled with reports of sharp fall in Vietnam prices claimed to have influenced the markets in India.
  • Global Black Pepper prices more than tripled between 2009 and 2015, reaching record levels mainly due to dwindling stocks and surging demand in Southeast Asia.
  • Production in Vietnam by far exceeds volumes produced in other origins, giving it the largest influence over global Pepper prices. Prices in Vietnam have fallen by approximately 20% since the start of this year.
  • Pepper production in Vietnam for 2016 is estimated at 150,000–160,000 tonnes, up about 18% y-o-y, while output in other major producing regions has also been reasonable this year, adding downward pressure to prices.
  • Cardamom prices have been trading firm since last few days at the benchmark markets of Kerala and Tamil Nadu due to strong demand from upcountry markets.
  • Spot prices at the MCX counter last week showed Rs 1,189.10 per kg, while the auction platform of the Spices Board recorded Rs 1,123.19 per kg average price on the same day in the auction conducted by State Trading Corporation.
  • The Cardamom market is likely to rally higher due to robust demand and lower production. India’s Production is likely to fall by 30-40% in 2016-17 due to unfavorable weather conditions.
  • The second round of picking is going on now and expected to come to a close by mid November. Third round will begin from December first week and may last till end of the month and with this much of the crop would have been picked leaving very little to be harvested.

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