Piling stocks hit Vietnam pepper market

Traders in Vietnam there are quoting fine quality ASTA grade at $3,500 a tonne (free on board HCMC), but buy orders are quoting only around $3400. In the last 7-8 days, around 500 tonnes were sold at $3,400.

The country is having a valid stock of 60,000-65,000 tonnes as total export till May was 33,000 tonnes.

During January-April, the US imported around 16,999 tonnes. During these five months, import from Vietnam was just 375 tonnes, while Indonesia came on the top by exporting 3,335 tonnes followed by India (810 tonnes).

In April alone, the US imported 5,112 tonnes. Now, both the US and EU have limited imports in order to check a sharp appreciation in prices. Again, fluctuation in the dollar against the Vietnam dong is making Vietnamese traders panic for clearing stocks at the earliest.

Brazil is also quoting lower prices due to high level of stock and its next crop season is expected to commence by July. The Indonesian crop will also hit the market by the end of next month with peak arrival scheduled in August-September.

Brazil exported around 13,000 tonnes during January-May, lower than last year. Its pepper export to Europe was down 2,000 tonnes at 4,800 tonnes compared with the previous comparable period.

Vietnam is also quoting $3,050 for 500 GL and $3,250 for 550 GL (both fob HCMC), while India offers ASTA at $3,500-3,550 (fob Kochi).