Black Pepper Update - Mar 23, 2012

It is hard to quantify the recent supply shortages and price increases on Black Pepper Oil. There is no doubt that during this current poor harvesting season, manufacturers and traders are sitting on stocks to cause additional speculation on price. For those more reliable sources they are suppling material fresh from distillation which shows the severity of the current supply conditions. It is not expected to improve over the next few months as the output from India this season will be 20% down on the previous season.

Elsewhere, Vietnam has started to harvest and expects to have reasonable supply, however once again farmers are holding back some harvesting to influence the continued price hikes. Throughout this month prices have risen 5% at origin.

In Sri-Lanka and Indonesia supply is low with few offers given for any stocks that may exist. April will see the Sri Lankan harvests start and the crop expectations are positive. Prices will be influenced by global demand and the conditions of Pepper from other origins. At best there may be some global price relief come May.

News tags : Market

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