Market Briefing: Spices and Exotics -08 Aug

– 6% fall in Indian cumin seed crop
– Covid-19 restrictions weakening chilli consumption in Malaysia, China and Bangladesh
– 50% increase in Cambodia’s chilli exports from January-July

Production

– India’s 2020-21 cumin crop is expected to reach 856,500 tonnes, 6% less y/y, on 1.24 million hectares, 30,000 less y/y.
– Para’s (Brazil) pepper harvest will start in September. Its crop may range between 35,000-37,000 tonnes. Chinese and Indonesian white pepper crops have been downgraded due to unfavourable weather just before their harvests.
– US honeybee colonies for operations with five or more colonies closed at 2.92 million on 1 January 2020, 2% higher y/y, according to USDA data. Colonies lost for operations were 255,860, 9% of the total in Q2 2021. Colonies added for operations were 677,290. Renovated colonies reached 480,380 units in Q2 2021.
– The US flavour company Kalamazoo Spice Extraction (Kalsec) has invested $10 million to open a 6,500 square-foot facility in Michigan to develop new herb and spice extracts to colour and flavour beverages and food and preserve meat.

Demand

– Weak domestic demand for India’s cumin seeds is offsetting robust exports, stabilising prices.
– Gradual recovery in essential oil consumption after the vaccination process was in full swing in the US and Europe in Q2 2021, as the Swiss company Givaudan’s results reveal.
– Weak chilli consumption in Asian countries such as Malaysia, China and Bangladesh, due to Covid-19 restrictions. This means India’s chilli stocks have peaked at 800,000 tonnes, according to trading sources.

Trade

– India’s cumin seed exports doubled y/y to 100,000 tonnes, worth $196 million, two thirds more in value, from January-April 2021, according to customs data. China was the main importer, taking 35% of the total exported volume.
– Cambodia’s chili international sales rose by 50% y/y to 67,540 tonnes from January-July 2021, Thailand taking 97% of the total. Thai importers are keeping an eye on Cambodia’s spices as farmers are not using pesticides, fulfilling Thailand’s MRL.

Prices – Trading sources quoted the following cassia prices in July:

Indonesia’s KA 2-2.5%: $5,483 per tonne fob
Indonesia’s KB 1.5-2%: $4,960/tonne
Vietnam’s Saigon 3.0%: $2,780/tonne
Vietnam’s Saigon 3.5%: $2,873/tonne
Vietnam’s Saigon 5.0%: $4,113/tonne

Indonesian and Chinese white pepper prices grow by 7.8% m/m in July due to downgraded crop estimates. Indonesia’s Muntok FAQ was quoted at $7,130/tonne fob. China’s FAQ was listed at $6,775/tonne fob.

Source: https://vietnamentrepreneurs.com/market-briefing-spices-and-exotics-08-aug/