Market Briefing: Spices and Exotics – 27 Aug

– 6% fall in India’s cumin crop
– Robust demand from India’s animal feed industry is favouring recovery in guar gum prices
– 29% increase in Guatemala’s cardamom exports

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.
– Wildfires have burned 1,600 sq.km of forest in Turkey’s Mediterranean (South) and Aegean (East) regions since 28 July, damaging pine forests used by beekeepers to feed their bees. The government reported that around 80% of beekeeping farms have been affected in Mugla (South East), which accounts for half of the total domestic crop.
– Severe drought has hit Bangladesh’s green chilli plantations, halving yield during the summer crop, which accounts for a quarter of the total annual output.
– India’s 2020-21 coriander crop is expected to increase by 17% y/y to 822,210 tonnes on 628,600 hectares, 19% more.
– 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.

Demand

– Gradual recovery in essential oil consumption after the Covid-19 vaccination process is in full swing in the US and Europe in Q2 2021, as global leaders’ (IFF, Givaudan, Symrise, Firmenich, etc.) sales reveal.
– Chilli consumption is weak 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.
– India’s demand for spices is gradually recovering after the government eased Covid-19 restrictions, favouring rising sales of turmeric, coriander and cumin prices.
– Robust demand from the animal feed industry is fuelling India’s guar gum prices.

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. China was the main importer, taking 35% of the total exported volume.
– Cambodia’s chilli 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.
– Peruvian ginger exports rose 9% y/y in volume to 21,670 tonnes and by 17% in value to $43.6 million in January-July 2021.
– Vietnam’s pepper exports were 180,210 tonnes, worth $591.4 million, in January-July 2021, 2% less y/y in volume and 48% more in value, thanks to gradual growth in prices since January.
– Brazilian pepper international sales fell by 9% y/y in volume to 51,620 tonnes and by 32% in value to $145.5 million in January-July 2021.
– Argentina’s international honey sales fell by a quarter y/y in volume to 33,360 tonnes but increased by 26% in value to $121.7 million.
– Brazilian honey exports in H1 2021 rose by 55% y/y in volume to 31,460 tonnes and trebled in value to $108 million. The US was the main importer, accounting for 74% of the total volume.
– Guatemala’s cardamom exports reached 33,415 tonnes in H1 2021, worth $628.9 million, 29% more y/y in volume and 14% more in value.

Price

– The Indian coriander spot price was INR7,308 per quintal ($97.3/quintal) at Kota (Rajasthan, North India) wholesale market on 9 August, 6% more than on 8 July.
– Bangladesh’s green chilli prices reached TKY200/kilo ($1/kilo) in Dhaka, in the week ending 8 August, five times more w/w due to supply shortage.
– India’s guar gum spot price was INR8,363 per quintal ($112.6/quintal) at the Jodhpur wholesale market on 16 August, 24% more than on 19 July, due to strong demand from the animal food industry.
– The Indian spot fob turmeric price reached INR7,583 per quintal ($102/quintal) at the Nizamabad market (Telangana state, south central) on 18 August, 4% more than on 19 July.

Source: https://vietnamentrepreneurs.com/market-briefing-spices-and-exotics-27-aug/