Softs News

May 24 - Intl pepper Market Report, Week 20-24 May 2019 (IPC)
- Market this week showed a rather positive trend with only Muntok white pepper recorded a deficit. In local market, Malabar black pepper was traded with a slight 1% increase as compared with the previous week at an average of USD 4,955 per Mt. The slight increase of Malabar black pepper was contributed to the strengthening of the Indian Rupees toward US Dollar as the price of pepper in local currency remained stable at INR 345 per Kg. Indonesia black pepper was traded with an increase of 1% as compared with the previous week, averaging at USD 2,072 per Mt. Whilst Muntok white pepper was reported to be traded with a 2% deficit as the local price dropped to an average of IDR 50,000 per Kg. Despite the weakening of Malaysian Ringgit towards US Dollar (MYR 4.19 per USD 1), Malaysian black pepper was reported with a 1% increase as compared with the previous week due to increase in local currency (market closed with Malaysian black pepper at MYR 10 per Kg) while Malaysian white pepper was reported stable, averaging at USD 2,378 per Mt and 3,846 per Mt respectively. Viet Nam black and white pepper were traded stable as compared with the previous week. Sri Lanka black pepper and China white pepper were also reported to trade their pepper at a stable rate, averaging at USD 3,316 per Mt and 4,645 per Mt respectively.
- In international market, pepper was traded with a similar trend in local market with Indonesia white pepper reported a slight deficit. India black pepper was also reported with a slight 1% increase as compared with the previous week. Lampung black pepper was traded with the same 1% increase internationally, averaging at USD 2,529 per Mt while Muntok white pepper was traded with 2% deficit as compared with previous week. Malaysian black and white pepper were traded at stable rate internationally. Viet Nam black pepper 500 g/l 550 g/l and white pepper were reported with the same 1% increase respectively. China white pepper FOB price was reported stable at USD 4,845 per Mt. US market this week was reported stable and unchanged.

May 24 - Import of Pepper by UNITED ARAB EMIRATES
(IPC)
-The United Arab Emirates (UAE) sometimes simply called the Emirates, is a country in Western Asia at the southeast end of the Arabian Peninsula on the Persian Gulf, bordering Oman to the east and Saudi Arabia to the south, as well as sharing maritime border with Qatar to the west and Iran to the north. The economy of the United Arab Emirates is the second largest in the Middle East (after Saudi Arabia), with a GDP of USD 403.2 Billion in 2014. Spices and herbs are an essential part of UAE cuisine. The food is tasty and fragrant because of the various exotic spices and herb used to make the food. Therefore, to meet the domestic consumption of spices especially pepper, the UAE imported pepper from various pepper producing countries. The pepper import of UAE showed an increasing trend in the last three years.
- In 2017, UAE was reported to have imported a total of 2,799 Mt of pepper which 88% of it comprised of whole pepper while 335 Mt of it was ground pepper. The average pepper import by UAE in 2017 was reported at 233 Mt per month with the highest quantity recorded in November with 517 Mt. The total expenditure of pepper imports by UAE amounted to USD 11.3 Million, recording an average price of the total pepper imported by UAE at USD 3,886 per Mt for whole pepper and USD 5,056 per Mt for ground pepper.
- 2018 saw pepper import by UAE increased by 21% as compared to previous year totalling at 3,397 Mt which comprised of 3,227 Mt of whole pepper and 170 Mt of ground pepper. The average pepper import by UAE was reported at 283 Mt per month which peaked in November 2018 with 752 Mt. There was an increase in demand of pepper in November due to preparation to celebrate the national day on 2 December each year in UAE. Although increasing in term of quantity, the pepper import by UAE decreased by 20% in terms of value totalling at USD 8.9 Million. The average prices of the total pepper imported by UAE was reported to be at USD 2,491 per Mt for whole pepper and USD 5,447 per Mt for ground pepper which meant a loss 36% for whole pepper and a gain 8% for ground pepper as compared to previous year.
- At the beginning of 2019, pepper import by UAE as of March continued its increasing trend by recording an increase of 94% as compared with the same period in 2018, totalling 1,243 Mt which comprised of 1,233 Mt of whole pepper and 9 Mt of ground pepper. The total expenditure of pepper imports by UAE as of March 2019 increased by 33% as compared to previous year in the same period, totalling USD 2.6 Million. By the end of March 2019, most of pepper imported by UAE both whole and ground were reported to come from Brazil with 1,025 Mt (an increase of 74% as compared with the same period in 2018), Madagascar with 107 Mt (a decrease of 24%), India with 54 Mt (a decrease of 105%) and USA with 13 Mt (a decrease of 22%). UAE import of pepper from Brazil increased significantly as of March 2019 was contributed to the low-price of pepper coming out from Brazil. The average price of the total pepper imported by UAE from Brazil was at USD 2,156 per Mt.

May 23 - Daily Cocoa Futures Market Report

A clear weakening of the British pound led us to expect a firm opening of London. The reality had, as so often, other plans: After an unchanged opening, support was first tested for the previous day's low, followed by a gradual upward movement until hedge sales against cover from the origin let the market sink to new low. The "specs" in turn knew how to take advantage of this with new purchases, which gave the prices a boost right up to the end. Sep 19 closed at GBP 1772 (+10). Fundamentally little to report, as mentioned the weak currency in the turmoil around Theresa May. Nevertheless: Despite the weakness of the British pound, quotations around GBP 1800 are still a good way off, at the same time there is a good chance of a correction to the south through further initial cover and associated hedge sales. Depending on cover, market should be accompanied here.

May 24 - Global sugar output in 2019/20 to increase 1% yr/yr - USDA 
Global sugar output is set to increase 1% in 2019/20 from the previous marketing year, as production gains in Brazil and the European Union more than outweigh the decline in Indian output, the U.S. Department of Agriculture (USDA) said on Thursday. In its biannual report, the USDA forecast 2019/20 production at 180.7 million tonnes. The USDA also revised down its 2018/19 production outlook to 178.9 million tonnes from a previous forecast of 185.9 million, citing lower yields in India and the European Union and the increased use of cane for ethanol production in Brazil. 

 
 May 24 -
Germany’s Nordzucker posts loss, sees another this year 

Germany's second largest sugar refiner Nordzucker on Thursday became the latest major European producer to post a loss as the industry battles against a slump in prices. Global sugar prices ended 2018 at their lowest in 10 years amid heavy oversupply. Nordzucker posted a 36 million euro ($40.09 million) loss for the financial year to the end of February versus an after-tax profit of 118 million the previous year. Operating losses reached 58.1 million euros. 

 
 May 24 -
Mexican tomato producers make new offer in U.S. trade spat 

Mexican tomato growers have submitted new proposals to the U.S. Commerce Department to govern trade of their products in a bid to end a dispute that led to tariffs being slapped on Mexican tomato exports to the United States this month. In a statement on Thursday, the tomato growers said they had updated an offer issued last month to the United States. That offer failed to head off the spat with American rivals looking to restrict supply of Mexican tomatoes to the U.S. market.

 
May 24 - No rush to crush: Brazil sugar ops continue to lag previous season 
Cane processing and sugar production in Brazil's main producing region in the first half of May remained below levels seen at this time in the previous season, as late cane development and poor sugar prices give no reason for mills to rush. According to a report by cane industry group Unica, center-south mills crushed 38.63 million tonnes of cane in the first half of May, 9.7% less than a year earlier, and produced 1.59 million tonnes of sugar, 16% less than in same period last season, Unica said.

May 23 - Daily Cocoa Futures Market Report

At first it looked like a further fortification of the market. London came forward and New York followed in the afternoon. September 19 traded at the peak of GBP 1777. In the last hour hedge sales against coverages from the origin then took place and as a result the market in London closed with a minus of GBP 8 = GBP 1762. Whether it was the beginning of a correction the next few days will show...

May 23 - In push to raise coffee output, Colombia's south may hold key
Colombia's isolated south could be crucial to the country's push to expand coffee production by nearly 30 percent despite low global prices, its growers federation says, as farmers seek to ramp up productivity amid security improvements. Output in Colombia, the world's top grower of washed arabica, has hovered around 14 million 60-kg bags for four years as farmers battled extreme weather and low international prices, but the federation and the government have kept a medium-term 18 million bag goal.

May 22 - Daily Cocoa Futures Market Report

...and on we go north. A behavioral prelude, with only 1000 lots of sales in London, was the afternoon in New York to increased purchases of the "managed money fraction" (see report yesterday) with the result that September 19 in London ended the day with a plus of GBP 26 = GBP 1770 = 1.47%. New York closed with a plus of US$ 54 = US$ 2437 = 2.22%. Where is the journey going? First resistance in London from GBP 1803, then GBP 1828. Towards the south the first support should start from GBP 1596. From today's perspective, one can confidently put aside the dreams of prices of GBP 1536 (low from 1.10.2018, see chart).  Both stock exchanges are slightly "overbought", so there is hope for a correction, but this should be used for price hedging purchases.

 May 22 - Brazil to drop WTO sugar case against China 
Brazil will no longer seek a panel at the World Trade Organization (WTO) to investigate China's sugar trade policies, the Brazilian government said on Tuesday, smoothing commercial relations with its top trade partner. "Brazil and China have reached an understanding regarding the consultations made at the WTO on sugar," the Brazilian ministries of Foreign Affairs and Agriculture said in a statement.

May 21 - Daily Cocoa Futures Market Report

Hedge sales against cover-ups from the weekend at the origin initially ensured a weak start to the week. Even with the opening in New York, there was no strengthening of the market. The change of direction to the north began with the start of trading in Chicago. Increased buying against the very large gross short position in the "managed money" fraction mentioned yesterday provided a strong strengthening of the market. The next few days will show whether speculators in New York are willing to further reduce their short position and go long! The old wisdom from Kaiser's times: Never buy in a falling market has no meaning for a long time! From circles which are active in Chicago it was to be heard that the "Black Box Trading" had a portion of approx. 84% in the last year and here foundation backgrounds played no large role. Closing yesterday: + GBP 19 = GBP 1744. The next correction to the south should be used for buying.

May 21 - Ivory Coast dry spell worries cocoa farmers 
Below average rainfall last week in most of Ivory Coast's cocoa growing regions, has raised concerns for the April-to-September mid-crop, farmers said on Monday. The rainy season in the world's top cocoa producer has been slow to start, and farmers fear the April-to-September mid-crop could be cut short due to the lack of rain.

May 20 - Daily Cocoa Futures Market Report

It was a rather boring end to the week. In anticipation of possible major changes in the Commitment of Traders Report on 14 May 19, prices moved within a narrow range of only GBP 19 (July 19, London). The changes in the speculator position varied. In total, the net long position increased slightly by 919 lots to 81,418 lots. However, the change in London/New York is interesting. In London, the long position fell by 4,096 lots, while in New York there was an increase of 5,015 lots. This is the first time in weeks that the short position in New York has been significantly reduced! It remains interesting in cocoa...September ended Friday with a minus of GBP 8 = GBP 1725.

May 17 - Intl Pepper Market Report, Week 13-17 May 2019 (IPC)
- This week the market showed mixed responses with a rather negative trend. In local market Malabar black pepper was traded 2% lower than the previous week at an average of USD 4,923 per Mt. The price of India black pepper in local currency was also reported with deficit by 1% at average of INR 346 per Kg and the weakening of Indian Rupee towards US Dollar contributed to the 2% deficit in India price. Indonesia showed mixed responses on its black and white pepper price. Lampung black pepper was traded with a 1% deficit as compared to the previous week at an average of USD 2,043 per Mt while Muntok white pepper, despite the weakening of Indonesian Rupiah towards US Dollar, was traded with 4% increase as compared with the previous week at USD 3,533 per Mt as the price in local currency increase to IDR 51,000 per Kg. Though this week Malaysian Ringgit reached its lowest rate for 2019 (averaging at MYR 4.17 against 1 USD), Malaysia black and white pepper were traded with an increase of 3% and 1% respectively as compared to the previous week. Viet Nam black and white pepper in local market this week were reported to be stable at an average of USD 1,839 per Mt and USD 2,848 per Mt respectively. Sri Lanka white pepper was traded with a 1% deficit as compared with the previous week while China white pepper was traded stable at an average of USD 4,647 per Mt.
- This week international market experienced more negative trend than the local market. India black pepper remained to be traded with a 2% deficit internationally as compared with the previous week, averaging USD 5,207 per Mt. Lampung black pepper was reported to have experienced the same 1% deficit as the local market while Muntok white pepper recorded a 4% spike as compared with the previous week at an average of USD 4,165 per Mt. Malaysia black and white pepper were traded with 2% and 1% spike respectively as compared with the previous week. Viet Nam black pepper 500 g/l and 550 g/l was reported to have recorded a slight 1% deficit and was traded at USD 2,121 per Mt and USD 2,186 per Mt respectively. Whilst Viet Nam white pepper recorded 3% deficit as compared to the previous week. China white pepper was reported stable at an average of USD 4,847 per Mt.
- US Market was reported calm and stable. US dollars this week was reported to have strengthen against most Asian local currency as the US - China trade conflict prolonged which threatened to undermine investment and growth in developing Asia.

May 17 - Export of Pepper by SINGAPORE (IPC)
Singapore, officially the Republic of Singapore, is an island city-state in Southeast Asia. It lies one degree (137 Kilometres or 85 miles) north of the equator, at the southern tip of the Malay Peninsula, with Indonesia's Riau Islands to the south and Peninsular Malaysia to the north. Singapore's territory consists of one main island along with 62 other islets. Since independence, extensive land reclamation has increase its total size by 23% (130 square kilometres or 50 square miles). The country is known for its transition from developing to a developed one in a single generation under the leadership of its founder Lee Kuan Yew. Singapore is often described as one of Asia's economic tigers and is additionally renowed for its conservatism and strict local law, it is also currently ranked as the 14th largest export economy in the world. Although Singapore is not part of pepper producing country, Singapore exported a significant amount of pepper to the rest of the world.
In 2017, Singapore was reported to have exported a total of 3,859 Mt of pepper which 83% of it comprised of whole pepper and 672 Mt of it ground pepper. Singapore on average exported a total of 322 Mt per month in 2017. The total revenue of Singapore's pepper export in 2017 was reported to be as high as USD 29.4 Million, thus, recording an average price of the total pepper exported by Singapore at USD 6,996 per Mt for whole pepper and USD 10,542 per Mt for ground pepper.
2018 saw an increasing trend in terms of quantity of pepper exported by Singapore. Singapore was reported to have recorded a total of 4,807 Mt which comprised of 4,042 Mt of whole pepper and 783 Mt of ground pepper. Thus, recording an increase of 25% as compared to the same period in 2017. The average export of pepper by Singapore was reported to be at 401 Mt per month. Although increasing in quantity, Singapore's revenue from pepper export was reported to have declined by 25% to a total of USD 21.9 Million which recorded an average price of the total pepper exported by Singapore at USD 3,698 Mt for whole pepper and USD 9,052 Mt for ground pepper or decreasing by 47% and 14% respectively as compared with 2017.
As of February 2019, Singapore was reported to have exported a total of 422 Mt which comprised of 408 Mt of whole pepper and 14 Mt of ground pepper. Thus, recording a decrease of 55% when compared to the same period in 2018. By the end of February 2019, the total revenue of pepper export by Singapore was reported to have reached USD 1.4 Million, recording a loss of 69% when compared to the same period in 2018. The average price of the total pepper export by Singapore as of February 2019 was reported at USD 3,318 per Mt for whole pepper and 3,965 per Mt for ground pepper.
As of February 2019, Singapore's top 5 country destinations for its pepper were reported to be India with 175 Mt ( an increase of 2% as compared with the same period in 2018), USA with 65 Mt ( a decrease of 120%), Nepal with 50 Mt (a decrease of 150%), Taiwan with 35 Mt (an increase of 63%) and France with 15 Mt (a decrease of 2%). The decrease of export to USA and Nepal was the result of USA and Nepal directly imported pepper from pepper producing countries like; Viet Nam and Brazil as these two origins is famous for its competitive prices.

May 17 - Daily Cocoa Futures Market Report

0 days the correction held south. During this period London fell from GBP 1765 to 1657, a minus of GBP 108. Only 2 days were needed to move from GBP 1657 back to GBP 1734 = plus 77 to the north. Background for the strong fortification: Industry's buying interest sparked increased speculator buying against the short position. How it goes on, as usual, the speculators give the direction.

May 17 - Vietnam eyes U.S. avocado market after Trump spat with Mexico
Vietnam is seeking to export avocados to the United States, the Southeast Asian country said on Thursday, after U.S. President Donald Trump's threat to shut the U.S.-Mexico border raised fears American consumers could see a shortage. Avocado prices in the United States jumped by nearly 50% in April on fears that Trump would halt shipments from Mexico, which accounts for some 80% of its supply. Both processors and wholesalers began to stockpile the fruit as a result.

May 16 - Daily Cocoa Futures Market Report

The slight gains in the morning (high GBP 1703) were revised relatively quickly, as on the previous day. Sell orders on the way down led (once again) to new 7-week-lows of GBP 1656 / July 19. A weak British Pound and continued buying interest from the industry in the afternoon led to a firmer finish to GBP +17 at GBP 1697. Both markets breached the 200-day moving average (GBP 1674 / US$ 2277), where we continue to see good support. May 19 left the board with GBP +90 yesterday noon, with an open interest of 1500 lots only little cocoa will change hands. The ICCO leaves its current crop estimate at 4.8 million mt. Purchases in Ghana are 726,130 mt vs. 688,092 mt above last year but below expectations.

May 16 - Sugar deficit seen for 2019/20 as Indian, Thai output fall - Datagro
A global sugar deficit of 2.34 million tonnes is seen developing in the 2019/20 season, compared witha 0.48 million-tonne surplus in 2018/19, as output from major Asian players is set to fall, said Plinio Nastari, president of consultancy Datagro. The global sugar market has been weighed down this season by plentiful supplies, especially from India. Expectations that output there and in Thailand will fall in 2019/20 should help buoy the market, but high stockpiles in both countries and rising production elsewhere could limit gains.

May 16 - ICCO director keeps 2018/19 global cocoa output forecast at 4.8 mln T
A drop in Ghana's cocoa production has not dented the International Cocoa Organization's (ICCO) forecast for global output of 4.8 million tonnes for 2018/19, Executive Director Michel Arrion told Reuters on Wednesday. Ghana previously forecast production of 900,000 tonnes, the same as the previous season, but has revised that down to about 850,000 tonnes because of swollen shoot disease and a lack of rain.

May 16 - Brazil seeks China's OK for genetically modified sugarcane

Brazil's agriculture minister will ask Chinese officials on Thursday to greenlight exports to the Asian nation of sugar made from genetically modified (GM) sugarcane, which is expected to be widely used in Brazil in coming years. Minister Tereza Cristina Dias told Reuters in Beijing on Wednesday, on her first visit to Brazil's top buyer of farm goods, that she would raise the GMO issue during a visit to China's General Administration of Customs on Thursday.

May 16 - Cuban sugar harvest set to disappoint, adding to economic woes

The Cuban sugar harvest will weigh in at no more than 1.3 million metric tons this year, according to Reuters estimates, in the latest bad news for the struggling economy and well below the government's forecast. The industry had planned to produce 1.5 million metric tons of raw sugar during the harvest and export 920,000 metric tons, according to a presentation by Economy Minister Alejandro Gil Fernandez at a government meeting in December.

May 15 - EU scraps AD duties on US ethanol, but impact could be small (AgriCensus)
- The EU's scrapping of anti-dumping duties on US ethanol has prompted sharply divergent assessments of the potential impact on European producers, with the main European lobby for the biofuel warning of cheap imports, while some traders point to other regulatory hurdles that would dent the attractiveness of US shipments.
- The EU Council, which includes representatives of member state governments, said that the duties of around €62 per tonne had been scrapped because the European Commission concluded that reoccurrence of US anti-dumping was "unlikely".
"Having considered all the evidence available before it... the Commission concluded that there is no likelihood of recurrence of dumping should the measures be allowed to lapse," the EU Council said in a document published in the EU's Official Journal on Wednesday.
The decision effectively ends a dispute that has been running since 2013 when European producers lobbied successfully for antidumping duties, prompting a rash of lawsuits and appeals from the US ethanol sector - a heavy user of corn.
- In view of its conclusion that there is no major likelihood that the dumping of US ethanol will reoccur, the announcement in the Official Journal added that there is no need to analyse the likelihood of recurrence of injury and the interests of EU producers.
It said: "The measures on imports of bioethanol originating in the US should therefore be repealed and the proceeding terminated."
European producers have said repeatedly that anti-dumping duties are justified because the US makes far more ethanol than can be consumed domestically, and could send close to 1.5 billion litres of their product to Europe because other countries such as China and Peru, have closed off their market to US ethanol.
- US producers have long contended that they had no unfair advantage from selling ethanol into the EU because of the extra costs involved in converting the biofuel so it is compliant for use in vehicles in the 28-nation bloc.
"The EU’s decision to repeal anti-dumping duties on fuel ethanol imports originating in the US risks having serious consequences for the entire value chain of the European renewable ethanol industry – which accounts for 55,000 direct and indirect jobs in the EU," industry body ePURE said in a statement.
"It would also affect EU climate ambitions by favouring US ethanol – which is more carbon-intensive than European ethanol," ePURE said.
However, it is this higher carbon-intensity that is cited as a reason why US ethanol, most of which is based on corn, will find it difficult to compete with European origins of the biofuel.
- US-based sources expected the impact to be minimal, however, as only a handful of producers are certified to export to the bloc, with one source estimating it may only bring 100 million gallons (378 million litres) of new demand.
Carbon footprint
- EU ethanol often has a considerably lower carbon footprint that is certified for use in the EU's renewable transport scheme, in theory making it much more attractive to blenders and fuel companies that are required to meet blending mandates. However, ePURE noted that the decision had come at a time when other key US export markets, including Brazil, China, Peru and Colombia, have already introduced or are considering measures to protect themselves from unfair US ethanol exports.
Arbitrage window
"This increases the risk that US exporters divert exports previously targeting these countries to the EU," ePURE said, although some market sources are sceptical that a sufficiently large 'arbitrage window' will open up for US ethanol into the EU. China on May 13 said it would impose an additional 25% tariff on US ethanol, one of 6,000 products that could be subject to extra duties from next month amid a major trade war escalation between the countries.

May 15 - Daily Cocoa Futures Market Report

A buy order placed before the opening pushed the market up by GBP 36 shortly after half past half past 11. This rise, to GBP 1734 / July 19, was not long and the market hit a new 7 week low in 40 minutes. Until late afternoon it was then disoriented as in the last few days. Technical selling then caused July 19 to drop to GBP 1677, closing at GBP -22 at GBP 1680. New York did not keep up, this circumstance led to the arbitrage expanding to GBP -89 LDN / NY. Today is the last trading day for the May 19 position, with just 2,300 lots of open interest we don't expect too much activity here anymore.

May 15 - France sees bigger maize area as rapeseed, sugar beet shrink 
French farmers are expected to sow more maize in 2019, ending several years of decline as the crop benefits from a sharp drop in sowings of rapeseed and sugar beet, the farm ministry said on Tuesday. In its first estimate of the country's 2019 grain maize area, the ministry projected sowings at 1.43 million hectares (mln ha), up 4.9% from 2018. That remains 3.8% pct below the average of the past five years.

May 15 - Global sugar deficit of 2.1 mln tonnes seen in 2019/20 - S&P Global Platts 
A global sugar supply deficit of 2.1 million tonnes is seen developing in the 2019/20 season, according to a presentation from S&P Global Platts made on Tuesday. The deficit will be the result of declining global production, especially in Asia, S&P Global Platts said.

 May 15 - Brazil sugar forecast cut to 27.8 mln T ; global deficit rises - FCStone
Brazil's center-south will produce less sugar than initially expected in the new season that started in April, as higher gasoline prices boost demand for cheaper ethanol, leading mills to allocate less cane to sugar, broker INTL FCStone said on Tuesday. FCStone cut its projection for sugar production in Brazil's main producing belt to 27.8 million tonnes from 29.5 million tonnes expected in March. It said mills are likely to use only 37.1% of the cane in sugar production, compared to almost 40% projected earlier.

May 14 - Daily Cocoa Futures Market Report

What's up now, "up or down"? The cocoa market has been a bit disoriented in the last few days. If the current sideways movement continues for a few more days, there will be a breakout, the past has shown us that. Only in which direction...after the correction to the south of at least GBP 120 it could rather be a change of course to the north. The speculators will already fix it. Yesterday saw, again with very low sales, both purchases and sellers of speculators and on the day stood a minus of GBP 8 = GBP 1702.

May 13 - Daily Cocoa Futures Market Report

It was a constant "up and down" on Friday, but with very low sales. Prices moved within a narrow range of GBP 1702/1725 (July 19). At the end of the day there was a minus of GBP 11 = GBP 1710. On the lows of the day there were, as in the days before, smaller price hedging purchases by the industry. There is little to see of the speculators in the last few days...news from the source, no news. The "Commitment of Traders Re-port" as of 7.5.19 shows a net long position of 80,499 lots reduced by 1,082 lots. Interestingly, London holds a long position of 63,134 lots and New York only 17,365 lots. We wish you a good start into the week.

May 13 - Speculators hike net short position in raw sugar - CFTC
Speculators sharply increased their net short position in raw sugar on ICE Futures U.S. in the week to May 7 to its highest since late March, U.S. government data showed on Friday. Speculators increased their bearish stance on arabica coffee, slashed their bullish stance on cotton futures and options, and reduced their net short position in cocoa, the data from the U.S. Commodity Futures Trading Commission showed.

May 10 - Weekly Pepper Market Report, week 6-10 May 2019 (IPC)
- Market behaved differently in this 19th week of 2019. India and Malaysia origins were reported to experience a slight increase. In local market Indian black pepper was traded with a 3% spike as compared with the previous week at an average of USD 5,016 per Mt. The increase of India pepper prices could be contributed to the increase of the price in the local currency to INR 348 per Kg. Lampung black pepper and Muntok white pepper were reported to be traded locally with a 2% deficit as compared to the previous week, averaging at USD 2,060 per Mt and USD 3,387 per Mt respectively. The decreased was a result of the weakening of Indonesian Rupiah as well as the decreased of the price in local currency. Malaysia's black pepper was reported to have recorded a 2% spike as compared to the previous week at an average of USD 2,299 per Mt while its white pepper was reported to be stable. In local market Viet Nam black and white pepper were reported to be at stable rate and relatively unchanged. Sri Lanka black pepper was reported to be stable at an average of USD 3,322 per Mt while China white pepper was reported at an average of USD 4,643 per Mt.
- International market was reported to be slightly on the negative side with Indonesia and Viet Nam recording a deficit. India FOB prices was reported to have recorded the same 3% increase as opposed to the previous week. Indonesia origins experienced the same 2% deficits on its FOB prices for black and white pepper and was recorded at an average of USD 2,517 per Mt and USD 4,003 per Mt respectively. FOB prices for Malaysia black pepper recorded a marginal increase by 1% as compared to the previous week while the FOB price for white pepper remained stable. Viet Nam black pepper 500 g/l was reported to be stable. Whilst black pepper 550 g/l and white pepper were reported to have experienced 1% and 4% deficit respectively as compared to the previous week. China FOB price of white pepper was reported to be at an average of USD 4,843 per Mt.
- US Market was reported to be stable and recorded no changes.
Special News - Indonesia is to halt of cut pepper export to Viet Nam. Indonesian Minister of Agriculture Mr. Andi Amran Sulaiman had halted white pepper exports to Viet Nam and would channel them to India and Europe to make sure a good selling price for farmers which would boost their income and family welfare. He remarked that decision to end or cut pepper export to Viet Nam was taken due to Viet Nam's reprocessing of Indonesia's pepper for re-exporting. He further remarked in the future direct processing ought to take place in Indonesia. Furthermore, the Minister of Agriculture had instructed the Agricultural Quarantine Agency to Support all Indonesian export products to directly enter the destination country or to no transit in other countries.

May 10 - Export of Pepper by Malaysia (IPC)
Malaysia, divided by the South China Sea into two regions of the Peninsular Malaysia and Malaysian Borneo, shared land borders with Thailand, Indonesia and Brunei. Malaysia, known to be one of the major peppers producing country in the world with an average annual production more than 23,000 Mt, produces more than 90% of its pepper in the State of Sarawak. Producing both black and white pepper, Malaysia's most common varieties are Kuching and Semengok Emas.
Being one of the major pepper producers in the world, Malaysia is the fifth biggest pepper exporter in the world. In the past three years, pepper export by Malaysia had shown a declining trend. In 2017, Malaysia was reported to export a total of 12,184 Mt of pepper which 86% of it comprised of whole pepper and 1,700 Mt of it ground pepper. Malaysia on average exported a total of 1,015 Mt per month in 2017. The total revenue of Malaysia's pepper export in 2017 was reported to be as high as USD 72.6 Million, thus, recording an average price of the total pepper exported by Malaysia at USD 5,543 per Mt for whole pepper and USD 8,553 per Mt for ground pepper.
2018 saw a declining trend in terms of quality and value of the pepper exported by Malaysia. Malaysia was reported to have recorded a total of 11,777 Mt which comprised of 10,126 Mt of whole pepper and 1,652 Mt of ground pepper. Thus, recording a decrease of 3% as compared to the same period in 2017. The average export of pepper by Malaysia was reported to be at 981 Mt per month. Following the declining in quantity, Malaysia's revenue from pepper export was reported to have declined by 31% to a total of USD 50.1 Million which recorded an average price of the total pepper exported by Malaysia at USD 3,760 per Mt for whole pepper and USD 7,301 per Mt for ground pepper or loss of 32% and 15% respectively as compared with 2017.
As of January 2019, Malaysia was reported to have exported a total of 541 Mt which comprised of 435 Mt of whole pepper and 106 Mt of ground pepper. Thus, recording a decrease of 34% when compared to the same period in 2018. By the end of January 2019, the total revenue of pepper export by Malaysia was reported to have reached USD 2.1 Million, recording a loss 55% when compared to the same period in 2018. The average price of the total pepper exported by Malaysia as of January 2019 was reported at USD 3,108 per Mt for whole pepper and USD 7,938 per Mt for ground pepper, thus, recording a loss of 17% and a gain of 9% respectively.
As of January 2019, Malaysia's top 5 country destinations for its pepper were reported to be Japan with 134 Mt (a decrease of 53% as compared with January 2018), Taiwan with 90 Mt (an increase of 45%), China with 75 Mt (a decrease of 72%), Viet Nam with 75 Mt (an increase of 197%)and South Korea with 52 Mt (an increase of 161%).

May 10 - Daily Cocoa Futures Market Report

Yesterday also saw strong support towards GBP 1700 from yesterday's trading, which mentioned yesterday. Despite everything, yesterday we recorded a new 2 week low of GBP 1704, on an otherwise subdued day with a range of GBP 22. Closing July 18, almost unchanged, GBP +2 at GBP 1721. New York was a little more active, closing $ +31 at $ 2336. The last few days led to a widening of the arbitrage of GBP 75 LDN / NY at the top. Official arrivals in Côte d'Ivoire at the end of April were 1.8336 million mt vs. 1.5947 million mt (+15%). At +6.8% (at the end of April), the grinding figures there are also higher than in the previous year. Gradings in LDN, 94 lots were accepted yesterday, another 38 lots and 2 BDU´s (1000mt) are in the pipeline.

May 10 - Ivory Coast 2019 cashew output seen falling 4 percent from 2018
Ivory Coast 2019 cashew output is expected to drop to 730,000 tonnes from 761,000 tonnes last year, due to bad weather conditions, the head of the state cotton and cashew council said on Thursday. Council director Adama Coulibaly also said the market was slow compared to last year, due to a lack of financing and Vietnamese and Indian buyers' reluctance.

May 09 - Daily Cocoa Futures Market Report

The failure in the morning to break through the previous day's lows (GBP 1721 / July 19) led to further cover-ups against the  short position and industry buying. After the opening, liquidations of the longs resulted in a weak closing price of GBP -17 at GBP 1719. Next support we see from GBP 1700, the 50 and 100 days moving average, the psychological barrier and some further buying interest from the industry. Resistance should start at Tuesday's highs (GBP 1755). Yesterday the May / July 19 spread widened to GBP +159, the July / Sep 19 spread lost nearly GBP 40 in the last 3 days and traded at GBP +20 yesterday.

May 09 - Global sugar supply balance seen at 1.7 mln-tonne deficit - F.O. Licht
The global sugar supply balance is seen swinging to a deficit of 1.7 million tonnes in the 2019/20 season (Oct-Sept) from a surplus of 0.4 million tonnes in 2018/19, as production falls worldwide, consultancy F.O. Licht said on Wednesday. The analyst said that sugar prices hovering around 10-year lows will push some farmers to other crops in places like Thailand in the new 2019/20 season. It said Brazil's sugar production is expected to remain low as mills favor ethanol output, which is giving them higher financial returns.

 
 May 09 -
Mexican president says U.S. tariffs on tomatoes won't help migration problem

Mexican President Andres Manuel Lopez Obrador on Wednesday criticized a U.S. decision to impose a 17.5% tariff on tomatoes imported from Mexico, saying it ran counter to efforts to curb migration into the United States from south of the border. "This serves to encourage (migration)," Lopez Obrador told reporters at a regular news conference, noting the tariff decision was "the opposite of an intelligent policy seeking to temper the migration issue."

 
May 09 - Colombia losing coffee crop area due to low prices
Colombia has lost 40,000 hectares (99,000 acres) of coffee planting area over the last 18 months as farmers leave the industry amid low prices, the head of the coffee federation said on Wednesday, warning of a "humanitarian crisis." Robusta coffee slumped to a nine-year low on the New York market, while arabica touched a 13-year low of 88 cents per pound on Tuesday, as output exceeds global demand.

May 08 - Daily Cocoa Futures Market Report

The expected weak opening in London caused a correction in quotations for most of yesterday's trading. In July 19, from levels of GBP 1740, larger system-based sell orders were triggered and brought the market to new lows of GBP 1721. The industry accompanied the market in the afternoon with first price hedge purchases, the first significant activity after about 4 weeks. Closing price July GBP -29 at GBP 1736. The near July / Sep 19 spread widened to GBP +152. One week before the expiry of the May 19 date, the open position is still at a good 24,000 lots, activity in the grading area in London is more than modest.

May 08 - Smaller Brazil cane crop expected in 2019/20, higher sugar output
Brazil is expected to produce a smaller cane crop in 2019/20 than in the previous season, but sugar output is set to rise, government agency Conab said on Tuesday in its first report for the new crop that started in April. Conab projected the main center-south cane crop at 566 million tonnes, versus 572 million tonnes in 2018/19, saying planted area had fallen in the region and country in general, with many farmers switching to other crops such as soybeans.

May 08 - Beet growers to make offer for Suedzucker's French sugar units
French sugar beet growers said on Tuesday they would make an offer to Suedzucker next week to take over two French sugar factories that the German group plans to halt next year, as they seek to secure outlets for their production. A surge in sugar output after the European Union abolished production quotas in 2017 and a 40 percent slump in prices since early 2017 in an oversupplied world market have left many EU companies struggling with plunging profits.

May 07 - Daily Cocoa Futures Market Report

Without the participation of the London market, New York showed its weak side from the very beginning. Profit-taking by the "longs" was the trigger for prices to fall. The "10 days moving average $ 2332" was breached. The lowest price was $ 2328. At the end of the day, a minus of $ 39 = $ 2340 an ounce stood above the mentioned "10 days moving average" again.
Expectation for the opening in London: minus GBP 20/22

May 06 - Daily Cocoa Futures Market Report

Also last Friday the market / July 19 did not manage to gain a sustainable foothold above GBP 1800. Despite everything, it was a volatile trading day with a range of GBP 53 (High GBP 1809 / Low GBP 1756), with testing of the highest and lowest prices finally seen. Marginal hedge pressure and a firm GBP on Friday were enough to prevent a further rise in prices. July 19 ended the day with GBP -33 at GBP 1765. Commitment of Traders as at 30.04. show a small increase in net long position by 902 lots, now combined to 81,581 net long, despite an increase in the last reporting period of GBP 68 / $ 67. April trading in London 756,409 lots (+11.4%), New York 1,276,699 lots (+0.8%). London is closed today due to a Bank Holidays.

May 06 - Brazil expects China to end sugar import tariffs - official
Brazil expects that the Chinese government will not renew certain import tariffs on sugar, a Brazilian Agriculture Ministry official told reporters on Friday. Agriculture Trade Secretary Orlando Leite Ribeiro said he did not know what the timeline was for the tariffs to end and that further questions should be directed to the Foreign Ministry. When first announced by China in May 2017, the additional sugar tariffs were set to last three years.

 
May 06 - Honduran coffee exports up nearly 10 pct in April
Honduran coffee exports rose about 10 percent in April, reversing a five-month streak of shrinking shipments due to falling production, the head of the country's coffee exporters association said on Friday. Coffee exports in April totaled 883,917 60-kg bags compared to 804,573 bags in the same month last year, according to data from national coffee institute IHCAFE. 

May 03 - Weekly Pepper Market Report, 29 April-3 May 2019 (IPC)
This week market showed mixed responses with Indonesia and Sri Lanka being reported declining. In local market India traded its black pepper with an increase of 1% as compared to the previous week, averaging at USD 4,858 per Mt. Indonesian black and white pepper this week were reported with 1% deficits as a result of the weakening of Indonesian Rupiah against US Dollar. Lampung black pepper was traded at an average of USD 2,108 per Mt while Muntok white pepper at USD 3,443 per Mt. Malaysian black and white pepper was reported stable at an average of USD 2,264 per Mt and USD 3,809 per Mt respectively. Viet Nam local market was reported to be slow and stable with the Reunification and labour holidays. Viet Nam traded its pepper at an average of USD 1 ,838 per Mt for black pepper and USD 2,851 per Mt for white pepper. Sri Lankan pepper was traded with a 2% deficit as compared to the previous week at an average of USD 3,324 per Mt.
The international market was reported to experienced the same trend as the local market with Indonesian origin recorded a deficit. Indian FOB price was reported with an increase of 1% as compared to the previous week. Indonesian black and white pepper FOB prices recorded a slight 1% deficit when compared to the previous week at an average of USD 2,572 per Mt and USD 4,068 per Mt respectively. Malaysian FOB prices of black and white pepper were reported to be stable. Viet Nam FOB prices of black pepper 500 g/l, 550 g/l and white pepper were traded stable and unchanged at an average of USD 2,150 per Mt, USD 2,250 per Mt and USD 3,450 per Mt respectively.
US market was reported to remain stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt.

May 03 - Import of Pepper by SOUTH AFRICA (IPC)
South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa, it is bounded to the south by 2,798 kilometres of coastline of Southern Africa stretching along the South Atlantic and Indian Oceans. South Africa also one of pepper producing country, because of pepper is a tropical plant that grows in hot humid areas with high rainfall, pepper cultivation in South Africa can only be grown in the Lowfeld of Mpumalanga Province and KwaZulu Natal Province. However, South Africa's pepper production is unable to meet the domestic consumption which pushes the import of pepper by South Africa become one of the most importer country pepper in Africa in the past three years.
- In 2017, South Africa was reported to have imported a total of 4,995 Mt of pepper which 71% of it comprised of whole pepper while 1,472 Mt of it ground pepper. The average pepper imports by South Africa in 2017 was reported at 416 Mt per month with the highest quantity recorded in February with 817 Mt. The total expenditure of pepper imports by South Africa amounted to USD 25.6 Million, recording an average price of the total pepper imported by South Africa at USD 4,496 per Mt for whole pepper and USD 6,631 per Mt for ground pepper.
- 2018 saw pepper import by South Africa decreased by 25% as compared to previous year totalling at 3,731 Mt which comprised of 2,352 Mt of whole pepper and 1,378 Mt of ground pepper. The average pepper import by South Africa was reported at 311 Mt per month which peaked in August 2018 with 413 Mt. In accordance with decreasing in terms of quantity, the pepper imports by South Africa also decreased by 32% in terms of value which amounted to USD 17.4 Million. The average price of the total pepper imported by South Africa was reported to be at USD 3,932 per Mt for whole pepper and USD 5,939 per Mt for ground pepper which meant a loss 13% and 10% respectively.

 

At the beginning of 2019, pepper import by South Africa as of February continued its decreasing trend by recording a decrease by 20% as compared with the same period in 2018, totalling 501 Mt which comprised of 341 Mt of whole pepper and 160 Mt of ground pepper. The total expenditure of pepper imports by South Africa as of February 2019 decreased by 47% as compared to previous year in the same period, totalling USD 1.99 Million.
Most of pepper imported by South Africa both whole and ground pepper as of February 2019 was reported to come from Viet Nam with 357 Mt. Following Viet Nam, Brazil exported 59 Mt and Thailand 36 Mt. Compared to previous year in the same period pepper imported by South Africa was reported to come from Viet Nam with 383 Mt, Singapore with 105 Mt and Brazil with 32 Mt.

May 03 - Daily Cocoa Futures Market Report

In joyful anticipation of the opening in New York and the puzzling whether the old formation (3 days high, 3 days down) can be continued there, it was a restrained morning in a narrow bandwidth. New York then did the opposite, attracting over $71 in the early afternoon. London tried miserably to test the previous day's highs and traded at a high of GBP 1808/July 19 at the end of the day, GBP 1798 at GBP 1808/July. Despite everything, New York closed the day at $+59 at $2374. Here analysts see a good chance of a test of the highs from mid-April at $2430. The arbitrage showed itself yesterday, as did the May/July 19 LDN spread from the weak side. With little news worth mentioning from the origin, we wish a nice weekend.

May 03 - Brazil to reassess minimum guarantee prices for coffee 
Brazil will reassess the methodology used to set the government's minimum guarantee prices for coffee, the Agriculture Ministry said on Thursday. The review - to be jointly undertaken by crop supply agency Conab as well as private sector experts and farmer cooperatives - comes after farmer criticism that current guarantee values do not reflect production costs and are helping pressure global coffee prices to their lowest levels in more than 10 years.

 
May 03 - Pepsi withdraws Indian potato farmer lawsuits after political pressure 
PepsiCo Inc has agreed to withdraw lawsuits against Indian potato farmers it alleged infringed a patent by cultivating a variety grown exclusively for its Lay's potato chips. The U.S. snack food and drinks maker, which in addition to filing the lawsuit against the four farmers in April had sued five other potato growers, had said it wanted to settle the issue amicably.
 
 

May 02 - Daily Cocoa Futures Market Report

The reached new 9 ½ monthly highs (GBP 1820 / July 19) in the morning, mainly due to another more than firm May / July 19 spread of GBP 148, generated further good activity of origin and the associated hedge pressure. For no apparent reason, at least for us, New York collapsed after the official opening and lost $65 in minutes. London followed well and traded to lows of GBP 1763, closing GBP -27 at GBP 1772. An impressive performance and range of GBP 57 without the participation of most European market participants. There is currently little activity in the grading room in London and that just 2 weeks before May 19 leaves the board. Certainly one of the reasons for a firm spot spread.

May 01 - Daily Cocoa Futures Market Report

The, short, weak phase of the market, caused by a weak finish in NY from the previous day and a strong British Pound, did not last long. July 19 tested the GBP 1800 mark around noon, but good hedge pressure from the origin stopped the rise, alsoshort lived. Fresh new longs and a massively firm spot month spread of GBP 137 led, in the afternoon, to a high of GBP 1806. Closing July 19, almost unchanged, GBP +1 at GBP 1799. The July / Sep 19 spread reached a new high of GBP 51. New York showed a contrasting event and lost US$ -24 in July 19, closing at $ 2359. It remains exciting on the cocoa market...but as an old German children song says "May makes everything new".

May 01 - Ivory Coast acts to avert defaults on cocoa export contracts this season 
Top cocoa producer Ivory Coast has averted defaults on export contracts this season by letting multinational commodities companies buy at-risk contracts from local exporters, exporters and sources at the cocoa regulator said on Tuesday. During the 2017/18 and 2016/17 growing seasons, exporters defaulted on nearly 500,00 tonnes of cocoa contracts they had bought in advance of the season as world market prices fell and exporters were unable to honour commitments to suppliers.

May 01 - COFCO seen buying small ICE May raw sugar delivery - traders 
Cofco International, the trading arm of Chinese state-owned food group COFCO, was seen as the sole buyer of the delivery against the May raw sugar futures contract, the smallest since July 2014, according to traders and exchange data on Tuesday. The May raw sugar delivery against the ICE contract that expired on Tuesday totaled 1,324 lots, or about 67,262 tonnes, five traders said. Two of them said COFCO was the buyer and that the origins of the sugar included Mexico and Argentina.

Apr 30 - Daily Cocoa Futures Market Report

If London alone lacks any drive at the moment, it came after opening New York to a further fortification of the market. July 19 tested and broke the highs of mid-April (GBP 1785) and aimed for the GBP 1800 mark, which was not broken with a high of GBP 1797. Closing July GBP 19 +33 at GBP 1796, the highest closing in 9 ½ months! A look at the first month of May 19 shows a strong rise of almost GBP 300 within 5 weeks. Activity in the grading room in London is picking up a little speed, second more BDU´s Cameroon were tested and approved (one of which had been rejected last week). Arrivals in Côte d'Ivoire were 1.841 million mt vs. 1.610 million mt from 17/18 (+14.3%) as of 28 April.

Apr 30 - Ivory Coast dry weather could shorten cocoa mid-crop 
Below-average rain in most of Ivory Coast's cocoa regions last week could reduce the size and quality of the April-to-September mid-crop, farmers said on Monday. The rainy season in the world’s top cocoa producer runs from mid-March to late October, with heavy showers expected to begin this month.

Apr 29 - Daily Cocoa Futures Market Report

If it was a restrained trading day for long stretches, life came into the quotations in the afternoon. Driven by fresh / new "longs", July 19 gained over GBP 30, traded at highs of GBP 1768 and ended the day firmly at GBP +28 at GBP 1763. The next target and resistance could be the mid-April highs of GBP 1785. Commitment of Traders as at 23.04.19 show a small increase in the net long position from 3,291 lots to 80,679 lots net long. Divided up, London gained a good 6,000 lots, while New York lost almost 3,000 lots. Change in the last reporting period GBP -4 / US$ -54. We wish you a good start into the week.

Apr 29 - Speculators reduce net short position in raw sugar - CFTC 
Speculators reduced their net short position in raw sugar on ICE Futures U.S. in the week to April 23 to its smallest in about eight weeks, U.S. government data showed on Friday. Speculators cut their bearish stance on arabica coffee, increased their net short position in cocoa, and boosted their bullish stance on cotton futures and options, data from the U.S. Commodity Futures Trading Commission showed.

Apr 26 - Daily Cocoa Futures Market Report

After technical and psychological support on Wednesday, prices yesterday gained 1.7% above the previous day's highs, July 19 closed at GBP 1735 (GBP +29). So far, the exact same picture has been seen in late January and February. Historically, the market would therefore have to come under considerable pressure today - as in Jan/Feb. We will see. In the course of gradings now three weeks before the last trading day of the May 19 contract, the May/June 19 spread came under some pressure for the first time in 9 days. However, it still traded at a premium of over GBP 100; the Jul/Sep19 spread around GBP 24 - not necessarily water on the 'bearish' mills. The pre-sales of Côte d'Ivoire are at around 900,000mts for 2019/20 as of mid-April, purchases current crop Ghana at 705,000mts, thus comparatively stable.

Apr 26 - World Pepper Market Report, Week 22-26 April 2019 (ICP)
- This week the world mourned after devastating series of bomb blasts struck several Churches and Hotels in Sri Lanka during the Easter Holiday on 21 April 2019. The Easter Sunday attack which had caused death toll of over 250 people as of 26 April, was reported to have influenced the rise of pepper price in Local market India as it recorded a 1% increase when compared with the previous week. The increase was contributed to the slowing down of import from Sri Lanka as the Sri Lankan Government declared emergency. India was reported to have traded their black pepper at an average of USD 4,809 per Mt. Whilst Lampung black pepper was traded stable at an average of USD 2,125 per Mt, Muntok white pepper was reported to have recorded a 3% deficit as compared to the previous week at an average of USD 3,471 per Mt. Malaysia's black and white pepper price was reported at a stable rate as the Malaysian Ringgit staying at an average of 4.13 against US dollar. Black and white pepper Viet Nam continued to be reported flat and stable, averaging at USD 1,893 per Mt and USD 2,854 per Mt respectively. Sri Lanka black pepper was traded at an average of USD 3,402 per Mt.
- In the international market, India's FOB price for its black pepper was reported stable at an average of USD 5,096 per Mt. Indonesia continued its trend with Lampung black pepper was reported stable internationally at an average of USD 2,593 per Mt, while Muntok white pepper recorded 3% deficit as compared to the previous week. Malaysia traded its black and white pepper internationally at a stable rate, averaging at USD 2,992 per Mt and USD 4,538 per Mt respectively. FOB Prices of Viet Nam black pepper 500 g/l, 550 g/l and white pepper were reported stable and unchanged as compared to the previous week.

Apr 26 - Import of Pepper by THAILAND (ICP)
- Thailand, officially the Kingdom of Thailand and formerly known as Siam, is a country at the centre of the Southeast Asian Indochinese peninsula. Agriculture in Thailand is highly competitive, diversified and specialized with a lucrative international trade. Rice is the country's most important crop, with around 60 percent of Thailand's 13 million farmers growing it. Therefore, Thailand had long been the world's leading exporter of rice. Thailand is also one of pepper producing country known to have cultivated its pepper partially in southern Thailand. However, Thailand's pepper production is unable to meet the domestic consumption which pushes the import of pepper by Thailand to keep increasing in the past three years.
- In 2017, Thailand was reported to have imported a total of 3,821 Mt of pepper which 71% of it comprised of whole pepper while 1,125 Mt of it was ground pepper. The average pepper imports by Thailand in 2017 was reported at 318 Mt per month with the highest quantity recorded in June 2017with 576 Mt. The total expenditure of pepper imports by Thailand amounted to 30 Million, recording an average price of the total pepper imported by Thailand at USD 6,695 per Mt for whole pepper and USD 10,686 per Mt for ground pepper.
- 2018 saw pepper import by Thailand increased by 25% as compared to previous year totalling at 4,764 Mt which comprised of 3,109 Mt of whole pepper and 1,655 Mt of ground pepper, thus, averaging at 397 Mt per month which peaked in May 2018 with 718 Mt. Though increasing in terms of quantity, the pepper imports by Thailand decreased by 12% in terms of value which amounted to USD 26.4 Million. The average price of the total pepper imported by Thailand was reported to be at USD 4,437 per Mt for whole pepper and USD 7,618 per Mt for ground pepper which meant a loss of 34% and 29% respectively.
- At the beginning of 2019, pepper import by Thailand as of January continued its increasing trend by recording a 66% as compare with January 2018, totalling 549 Mt which comprised of 464 Mt of whole pepper and 85 Mt of ground pepper. The total expenditure of pepper imports by Thailand as of January 2019 increased by 18% as compared to previous year in the same month, totalling USD2.38 Million. Most of pepper imported by Thailand both for whole and ground pepper as of January 2019 was reported to come from Viet Nam with 380 Mt. Following Viet Nam, India exported 144 Mt, Philippines 11 Mt and China 8 Mt. Compared to previous year in the same period pepper imported by Thailand was reported to come from Viet Nam with 292 Mt or a spike of 30% recorded, Malaysia with 19 Mt, China with 10 Mt and Philippines with 6 Mt.

Apr 25 - Daily Cocoa Futures Market Report

Yesterday, profit-taking by the longs, driven by New York, also led to weaker prices. July 19 looked for and found good support just below the psychological barrier of GBP 1700, low GBP 1695. Next bigger support we see just at this psychological limit, as well as the 50 and 100 days moving average, which are all only good GBP 10 apart. The May / July 19 spread widened yesterday to GBP +124, an impressive performance just 3 weeks before May 19 leaves the board. Slowly the activities in the grading room in London start again, two BDU´s (fresh arrivals from Cameroon) were under the knife, one was accepted and one was rejected.

Apr 25 - France's Tereos appoints new execs amid industry-wide sugar slump
French sugar processing group Tereos has appointed a raft of new executives as part of a global reorganization to weather an industry-wide slump. Effective immediately, Alex Leite will be executive director of its sugar trading division Tereos Commodities Sugar, it said in a statement on Wednesday, while two new executives will be appointed under a new corporate structure that will entail "a clear distinction between the raw and white sugar books," the company said.

Apr 24 - Daily Cocoa Futures Market Report

The expected weak opening (call was GBP -27) was not as big as expected, July 19 opened yesterday at GBP -16, traded at lows of GBP 1724 and consolidated at these levels for most of the day. In the afternoon, the gap that had opened after the opening was closed at GBP 1754. Later, profit taking by the Longs continued to put the market under slight pressure, closing July at GBP 191731 / GBP -33. The May / July 19 spread catapulted yesterday to a premium of GBP 116! The arbitrage approached GBP -32 / July 19. Unofficial sources report about 900k mt pre-sales of the Ivory Coast of the 19/20 campaign. Means that since the last (unofficial) report from 12.04.19 approx. 100k mt were sold on, hedge pressure was only partially noticeable on the market except for the short fall on 16.04.

Apr 24 - Brazil total cane crush falls for the 3rd straight yr - govt  Brazil's total cane crush, including all regions such as center-south and north-northeast, fell for the third consecutive year in the 2018/19 crop that ended in March to 620.4 million tonnes, the government agency Conab said on Tuesday. The agency said that sugar production in the world's largest exporter of the sweetener totaled 29 million tonnes, versus 37.86 million tonnes in 2017/18, as mills favored ethanol production over sugar due to better prices for the fuel.


Apr 23 - Daily Cocoa Futures Market Report

On Thursday before Easter, both stock exchanges took profits from the "longs". July19 in London closed with a minus of GBP 19 = GBP 1764. Attempts to drive July19 in Lon-don to a high of GBP 1802 (3.1.19) failed. Without the participation of the London market, New York continued to show its weak side yesterday Easter Monday. However, with very low turnover, July19 fell to a daily low of US$ 2326. It recovered slightly towards the end and closed at US$ 2342 = minus US$ 30. The Commitment of Traders Report of 16.4.19 shows a net long position of 79,859 lots increased by 10,250 lots. The increase in the long position of 10,181 lots comes almost exclusively from the London market!
EXPECTATION LONDON OPENING: MINUS GBP 27

Apr 19 - World Weekly Pepper Market Report, Week 15-19 April 2019 (IPC)
- Market this Easter week showed mix response with Indonesia and China reported to be positive. India black pepper was traded stable in local market, averaging USD 4,784 per Mt. This week Indonesia successfully held the Presidential and Legislative election on the 17th April 2019 which contributed to the strengthening of Indonesian Rupiah towards US Dollar. Consequently, Lampung black pepper and Muntok white pepper were traded locally with an increase of 1% respectively as compared with the previous week, averaging at USD 2,135 per Mt for black pepper and USD 3,594 per Mt for white pepper. Contrary to Indonesia Rupiah, Malaysian Ringgit was reported at its lowest point in the past three months with MYR 4.145 (Bank Negara Malaysia Middle rate) to USD 1 on 18th April 2019, the continuous dropped of Malaysian Ringgit was reportedly linked to the pressure from negative news on the global index provider FTSE Russel reviewing Malaysia's market liquidity. - Malaysian black and white pepper were traded locally with the same 1% deficit as compared to the previous week. Viet Nam black and white pepper in local market were reported to be traded stable at an average of USD 1,841 per Mt and USD 2,856 respectively. Following the Sinhala New Year and Easter holiday, pepper market in Sri Lanka was reported to be inactive. China white pepper was reported to have experienced a significant 4% increase as opposed to the previous week at an average of USD 4,895 per Mt.
- Continuing the local market trend, FOB price of India black pepper was reported to be stable at an average of USD 5,072 per Mt. Indonesia black and white pepper were reported to record the same 1% increase in the international market with an average of USD 2,606 per Mt and USD 4,240 per Mt respectively. In International market, Malaysia black and white pepper were also reported to experience the same 1% deficit as compared with the previous week, averaging at USD 2,995 per Mt and USD 4,542 per Mt respectively. Viet Nam FOB prices for black 500 g/l, 550 g/l and white pepper were reported to be stable and unchanged. China white pepper FOB price experienced the same 4% increase as in local market and was traded at an average of USD 5,095 per Mt.
- US market continued to be quiet with only white pepper spot price of Sarawak/Brazil/Viet Nam recording a slight deficit to USD 4,741 per Mt.

Apr 19 - Import of Pepper by PHILIPPINES (IPC)
- The Republic of Philippines, a sovereign state in archipelagic Southeast Asia, is one of pepper producing country. Philippines' pepper production, known to have been cultivated partially in the Batangas regions, is unable to meet the domestic consumption which pushes the import of pepper by the Philippines to keep increasing in the past three years.
In 2016, Philippines was reported to have imported a total of 4,393 Mt of pepper which 84% of it comprised of whole pepper while 688 Mt of it was ground pepper. The average pepper imports by Philippines in 2016 was reported at 366 Mt per month. The total expenditure of pepper imports by Philippines amounted to USD 20.3 Million, recording an average price of the total pepper imported by Philippines at USD 4,538 per Mt for whole pepper and USD 5,008 per Mt for ground pepper.
- 2017 saw pepper imports by Philippines increased by 20% as compared to the previous year totalling at 5,281 Mt which comprised of 4,256 Mt of whole pepper and 1,025 Mt of ground pepper thus averaging at 440 Mt per month. Though increasing in terms of quantity, the pepper imports by Philippines decreased by 5% in terms of value which amounted to USD 19.1 Million. The average price of the total pepper imported by Philippines was reported to be at USD 3,518 per Mt for whole pepper and USD 4,090 per Mt for ground pepper which meant a loss of 22% and 18% respectively.
- Pepper imports by Philippines continued its increasing trend in 2018 by recording a 11% spike as compared with the previous year, totalling 5,857 Mt which comprised of 5,029 Mt of whole pepper and 828 Mt of ground pepper. The average pepper imports by Philippines in 2018 was reported at 488 Mt per month. The total expenditure of pepper imports by Philippines in 2018 decreased marginally to an amount of USD 19.0 Million. The average price of the total pepper imported by Philippines continued to decrease to USD 3,155 per Mt for whole pepper and USD 3,842 per Mt for ground pepper, recording 10% and 6% respectively as compared with the previous year.
- Most of pepper imported by Philippines in 2018 was reported to come from Viet Nam with approximately 4,923 Mt. Following Viet Nam, India with 268 Mt, Malaysia with 235 Mt, South Korea with 223 Mt and China with 80 Mt.

Apr 18 - Daily Cocoa Future Market Report

Was yesterday the cop day? At least that's how the fundamental news was perceived by the market. Asian grinding figures +9.5% (close to the record volume of Q4 2019), Ghana reduced its current harvest expectation by 50k mt to 850k mt, Ivory Coast is said to have already pre-sold 900k mt from 19/20, Ghana 380k mt (70k mt of which alone in the first 10 days in April). The July 19 forward was slightly tighter over long stretches and tested the Monday highs, which were breached in the afternoon and the market traded to highs of GBP 1785, closing GBP +48 at GBP 1783. Next resistance we see at GBP 1795 (high in February, 2 month continuation) and correspondingly GBP 1800 as psychological resistance. The May / July 19 spread widened yesterday to GBP +85, the July / September 19 spread to GBP +32...The first Funds / Specs are rolling their position!

Apr 18 - Ivanka Trump promotes businesswomen after Ivory Coast cocoa farm visit
Ivanka Trump vowed support for initiatives to promote women in business on Wednesday, after visiting an Ivorian cocoa farm on the second leg of her African tour. U.S. President Donald Trump's daughter, who works as his adviser, was speaking at a forum on women's economic empowerment in Ivory Coast's main city of Abidjan.

 
 
Apr 18 - Ghana 2018/19 cocoa output expected to drop 6 pct due to disease, drought
Ghana's cocoa output is expected to drop nearly 6 percent this season to 850,000 tonnes because of disease and dry weather, sources at the cocoa regulator, COCOBOD, said on Wednesday. Ghana previously forecast production of 900,000 tonnes, the same as the previous season, but revised that lower because of swollen shoot disease and a lack of rain since November which has dented output during the April-September mid-crop.

 
Apr 18 - Sugar maker Cristal Union to shut two factories in France -
L'Opinion
French sugar maker Cristal Union is planning to close two sugar factories in France, French newspaper L'Opinion said on Wednesday, in what would be the latest restructuring in a depressed European sector. Cristal Union will close a plant located in Bourdon in Central France and one in Toury, southwest of Paris, L'Opinion said.

Apr 17 - Daily Cocoa Future Market Report

Against the backdrop of somewhat better than expected grinding figures, the London market opened somewhat firmer, but without significant support from speculators. With the start of trading in New York, increased selling pressure from speculators came into the market. Profit-taking by the longs and smaller hedge sales against cover-ups from the origin were the triggers for the breakout from the sideways movement on both stock markets that had been expected for days. July19 fell to GBP 1713, recovered slightly at the end of the day and ended the day with a minus of GBP 9 = GBP 1735, which was achieved with very low net sales of only 7000 lots! New York fell at a peak of $ 82 an ounce, recovered at the end of the day and closed at $ 2346 an ounce = minus $ 50 an ounce. There could be 2 very interesting days ahead of the long Easter weekend...

Apr 17 - Brazil ethanol prices soar on harvest delays, strong demand
Brazilian ethanol prices jumped as much as 15 percent in the last week, the largest weekly gains since 2010, as strong demand by fuel distributors ahead of a national holiday met reduced offers by mills struggling to kick off harvesting of the new cane crop. According to Cepea/Esalq, an agricultural research center at the University of Sao Paulo, average prices for hydrous ethanol last week in Sao Paulo state, Brazil's largest fuel market, were at 1.896 reais ($0.4860) per liter (paid to producer, before taxes), 15.07 percent more than in the previous week.

 
Apr 17 - Ukraine sugar exports fall 10 pct so far in 2018/19 - union 
Ukraine has cut its white sugar exports by 10 percent to 304,600 tonnes in the first seven months of the September-August season, national sugar producers union Ukrtsukor said on Tuesday. Ukraine's 2017/18 sugar exports fell to 560,400 tonnes from a record 769,300 tonnes in 2016/17.

Apr 16 - Daily Cocoa Future Market Report

A slightly firmer opening was followed by hedge sales against cover-ups from the origin. London fell during the day to GBP 1738 (July19) Towards the end of the day, speculators made short purchases, resulting in a slight recovery in the market. July19 ended the day with a minus of GBP 19 = GBP 1744. No sign of a change of direction yet...only the sideways movement that has been going on for days will soon come to an end...Milling figures for the 1st quarter of 2019: Germany + 1.9%, ECA + 3.3%, Malaysia + 35.5%, Brazil -3.2%. Today will show whether the slightly higher than expected grinding figures in Europe will have an impact on the market.

Apr 16 - Brazil's coffee consumption to grow at more moderate rate -industry group 
Brazil's coffee industry expects a more moderate consumption growth rate in the local market in 2019 after a jump of almost 5 percent in 2018, an industry group said on Monday. Brazil is widely known for being the world's No. 1 coffee producer and exporter. But it is also a very large consumer, trailing behind only the United States, with a smaller population of around 200 million people.

 
Apr 16 - Ivory Coast rains set to improve mid-crop cocoa quality - farmers 
Mixed rains fell over Ivory Coast's cocoa-growing regions last week, farmers said on Monday, with more showers needed in some areas to boost the April-to-September mid-crop. The rainy season in the world's biggest cocoa producer runs from mid-March to late October, with heavy showers expected to begin this month.

 
Apr 16 - German Q1 2019 cocoa grind up 1.9 pct on year - BDSI 
Germany's first quarter 2019 cocoa grind rose 1.9 percent on the year to 101,498 tonnes, the association of German confectionery producers BDSI said on Tuesday. Germany's fourth quarter 2018 cocoa grind rose 0.4 percent on the year to 99,181 tonnes and full year 2018 grindings rose 6.1 percent on the year to 399,327 tonnes.

Apr 15 - Daily Cocoa Future Market Report

Also on Friday, the upward trend, which had existed since the end of March, continued in tact. July 19 ended the day solid, close to its highs, with GBP +24 at GBP 1763. Low but existing hedging pressure from the origin, especially for the other dates, prevented a further rise in prices. The May / July 19 spread widened to a premium of GBP +74 / close GBP +73, the highest spread of the first two months since 2011 (here it was GBP +88). Commitment of Traders show an expansion of the net long position from 34,097 lots to 69,609 net long as of 09.04.19, interesting as the market "only" changed GBP +25 / $ +68 in the last reporting period. A look at the speculators shows a 60/40 mix of fresh new longs and reductions of the short position. Tomorrow the European Milling Figures for Q1 2019 will be released (NCA to follow on Thursday). Estimates are unchanged or a slight / moderate increase.

Apr 15 - Colombia to give coffee farmers additional $32 mln in aid 
Colombia will give coffee farmers an additional $32 million in subsidies and tree replacement aid, President Ivan Duque said on Saturday, amid low international prices that have left growers struggling to break even. Coffee prices on the New York market have hovered at or below $1 per pound so far in 2019, as output surpasses demand on the global market.

Apr 12 - World Pepper Weekly Bulletin, week 8-12 April 2019 (IPC) 

 

This week market showed mixed responses with negative tendency where China being the only origin reporting an increase. In local market, black pepper India was traded stable at an average of USD 4,773 per Mt. Though, Indian Rupee weakened towards US Dollar, pepper price in India stable due to the slight increase in local currency which averaged at INR 331 per Kg. Following India, Indonesia also traded its Lampung black pepper and Muntok white pepper stable with an average of USD 2,120 per Mt and USD 3,568 per Mt respectively. Malaysia black and white pepper was traded at 1% deficit as compared with the previous week, averaging at USD 2,281 per Mt and USD 3,838 per Mt respectively. The drop in Malaysian pepper prices could be contributed to the weakening of Malaysian Ringgit towards US Dollar as the pepper price in local currency remained the same at an average of MYR 9,365 per Mt for black pepper and MYR 15,756 per Mt for White pepper. Viet Nam black pepper was reported to record a 1% deficit when compared with the previous week and was traded at an average of USD 1,841 per Mt whilst Viet Nam white pepper was traded 6% less than the previous week, averaging at USD 2,856 per Mt. Viet Nam's current harvest season continued to put pressure on the price whilst Vietnam Dong also reported to weaken against US Dollar. Sri Lanka black pepper was reported to have experienced 1% deficit when compared to the previous week whilst China white pepper became the only origin to have recorded an increase by 2% to an average of USD 4,692 per Mt.

In the international market, the same trend occurred with only China origin recorded an increase. India black pepper was traded stable at an average of USD 5,062 per Mt. FOB prices for Lampung black pepper and Muntok white pepper was also reported stable. Malaysian's FOB prices for black and white pepper were reported to have experienced a slight 1% deficit as compared to the previous week. FOB prices for Viet Nam black pepper 500 g/l, 550 g/l and white pepper were reported to have experienced the same 1% deficit as compared with the previous week and averaging at USD 2,150 per Mt, USD 2,250 per Mt and USD 3,450 per Mt respectively. China white pepper was traded internationally with a 2% increase when compared with the previous week.

US market was reported quiet and stable.

Apr 12 - Export of Pepper by SRI LANKA (IPC)

Sri Lanka, also known as Ceylon, is one of pepper producing countries with estimate production of pepper around 18,600 Mt for 2018. Though limited, Sri Lanka contributes to small share of global export with their distinctive black pepper. In the past five (05) years pepper export by Sri Lanka had fluctuated with an increasing trend both for the quantity as well as its value. India had become the top destination of Sri Lankan pepper in the past 5 years which could be contributed to the Free trade agreement between the two countries.

In 2014, Sri Lanka was reported to have exported a total of 7,925 Mt pepper which banked a total of USD 69.1 Million. Resulting an average price of the total pepper exported by Sri Lanka at USD 8,724 per Mt. Sri Lanka was reported to have exported a total of 5,236 Mt of pepper to India alone in 2014, making India the number one destination of pepper exported by Sri Lanka followed by Germany with 595 Mt.

2015, pepper export by Sri Lanka spiked significantly to 16,658 Mt recording a 110% increase when compared to the previous year. For the same year Sri Lanka also recorded the highest income from pepper export in the past 5 years with a total of USD 143.6 Million or a 108% increase when compared with the income of pepper export in the previous year. The average price of the total pepper exported by Sri Lanka for 2015 was reported at USD 8,621 per Mt. India remained to be the top pepper export destination by Sri Lanka with a total of 9,069 Mt followed by Pakistan with 1,503 Mt.

Sri Lanka pepper export decreased by 53% in 2016 to 7,874 Mt when compared with 2015. Sri Lanka further lost 50% of its income from pepper import in the same year. Banking only USD 72.2 Million on its pepper export revenue. Sri Lanka recorded an average price of the total pepper export at USD 9,181 per Mt. Though it significantly dropped, India continued to be the top pepper export destination by Sri Lanka with 4,801 Mt followed with Russian Federation.

In 2017 Sri Lankan export of pepper spiked by 69% to 13,313 Mt as compared to the previous year. Pepper export revenue of Sri Lanka in 2017 was also reported to have recorded an increase by 16%, amounting at USD 83.7 Million. Thus, recording an average price of the total pepper exported by Sri Lanka at USD 6,292 per Mt. India's total pepper imported from Sri Lanka spiked to 11,041 M whilst Germany following with 545 Mt. 2018 saw Sri Lanka exported 13,118 Mt of pepper which was 195 Mt less than the previous year. The slight drop in the quantity of the pepper export was followed by an even greater loss of 12% in terms of pepper export revenue of Sri Lanka which amounted to USD 73.8 Million. In 2018, saw the lowest average price of the total pepper exported by Sri Lanka in the past 5 years which only reached USD 5,633 per Mt. India was reported to have imported from Sri Lanka a total of 10,473 Mt pepper whilst Germany imported 714 Mt of pepper from Srilanka.

 

Apr 12 - Daily Future Cocoa Market Report

An early thrust northwards within the first 30 minutes after opening was not enough to break the high of the previous day of GBP 1756 (July 19), soon the day splashed sideways near the unchanged mark with small volumes. Until noon just a mere 1000 lots were traded. A majority of the industry shows itself patiently having covered at the recent lows , and also the pressure from the origin was not unusually high yesterday . July closed at GBP 1741 (-14), the May/Jul 19 spread again reached a new high of GBP +67. Fundamentally, little is heard. The European, U.S. and German grinding figures are eagerly awaited on April 16th.

Apr 12 - Indian sugar mills owe record $4.38 billion to cane growers
India's money-losing sugar mills have run up a record $4.38 billion in arrears to 50 million cane farmers, who have gone unpaid for their produce for more than a year, industry and government sources said on Thursday. Years of bumper cane harvests and record sugar production have hammered domestic prices, hitting mills' financial health to such an extent that monies owed to farmers, who form an influential voting bloc, have ballooned to an all-time high.

Apr 11 - Daily Future Cocoa Market Report

Ignored the market yesterday, for much of the day, the triple top of GBP 1749 (see report yesterday), it looked like a "mini version" of the previous day. Highs of GBP 1749 and losses in the morning. July 19 lost GBP 17, marked its low at GBP 1732 and was firmer in the afternoon. One hour before the close, the "chartists" also got their rest and July 19 broke through GBP 1749, traded high on GBP 1756 to just under end the day at GBP 1755 / GBP +3. Good weather reports from West Africa and good forecasts had no impact on yesterday's trading. The market continues to wait for fresh tradable news...

Apr 11 - Large Brazilian coffee exporter files for bankruptcy protection
Terra Forte, one of the largest Brazilian coffee exporters, has filed for bankruptcy protection in a Sao Paulo state court, lawyers for the company said on Wednesday. Law firm Freire, Assis, Sakamoto e Violante said Terra Forte was looking to restructure 1.1 billion reais ($288.2 million) in debt. It also said the exporter was seeking to raise 60 million reais in working capital from investors to maintain operations.

 
Apr 11 - Swiss govt says coffee 'not essential', stockpiling to end
Switzerland on Wednesday announced plans to abolish the nation's emergency stockpile of coffee, in place for decades, after declaring the beans not vital for human survival, though opposition to the proposal is brewing. Nestle, the maker of instant coffee Nescafe, and other importers, roasters and retailers are required by Swiss law to store bags of raw coffee.  

Apr 11 - Indian mills contract to export 2.7 mln tonnes sugar - trade
Indian sugar mills have contracted to export 2.7 million tonnes of sugar since the current season began on Oct. 1, a leading trade body said on Thursday. Mills have already shipped out 1.7 million tonnes of the sweetener, Praful Vithalani, president of the All India Sugar Trade Association, said.

Apr 10 - Daily Cocoa Future Market report

Early selling put the market under heavy pressure in the morning, July 19 lost a good GBP 40 within a few hours, seeking and resisting the 10-day moving average of GBP 1714 and the psychological mark of GBP 1700 / July low of GBP 1705. However, the early losses were quickly recaptured and after the opening of NY, buying against the short position began and firmer quotations were the result. Closing London GBP +9 at GBP 1747. Interesting is the chart formation with a triple top of GBP 1749 (highs of the last 3 days), this meets with little approval from the "chartists" and a breakthrough would be likely.

 Apr 10 - France sees less sugar beet and rapeseed sowing, more wheat and barley 
French farmers are expected to cut sharply their sowings of sugar beet and rapeseed for this year's harvest while increasing the area for soft wheat and barley, the country's farm ministry said on Tuesday. In its first estimate of the 2019 sugar beet area, the ministry pegged sowings at 455,000 hectares, down 6.3 percent from 2018.

Apr 10 - Brazil sugar mills crush 9.6 pct less cane as season starts 
Brazilian sugar mills in the center-south region, the world's leading cane-producing area, crushed 9.6 percent less cane in the second half of March compared to the same period a year earlier, cane industry group Unica said on Tuesday. The new cane season in the center-south officially starts in April, but mills normally begin crushing earlier if there is cane ready for processing. The second half of March serves as a barometer for the market to check how prepared mills and cane fields are in the world's largest sugar exporter for the new season.

Apr 10 - USDA lowers domestic sugar stocks outlook 
The U.S. Department of Agriculture (USDA) on Tuesday reduced its outlook for domestic sugar stocks as it slightly lowered its production outlook for the 2018/19 crop year. The USDA put the closely watched stocks-to-use ratio at 13.2 for the crop year through end-September, lower than last month's forecast of 13.6 and down from 16.1 in 2017/18.

Apr 09 - Daily Cocoa Market Report

After 10 trading days with steadily new highs, the massive rise in prices was interrupted yesterday. July 19 found good resistance at Friday's highs / GBP 1649 and ended the day slightly weaker at GBP -7 at GBP 1743. Hedging pressure from the origin was not evident yesterday, when will the origin return and when will the specs / funds decide on their next move? This will drive the market in one direction or the other. The May / July 19 spread approached GBP 12, but is still trading at a fixed premium of GBP +53. Arrivals in Côte d'Ivoire on 07.04.19 were 1,748 million mt vs 1,521 million mt from 17/18 (+14.9%). The good harvest, as well as the good weather conditions are, however, already long priced in...

Apr 09 - EU sugar rises as regional market tightens, world prices languish 
Spot sugar prices in the European Union are recovering from last year's record lows as world prices languish, prompting a pick-up in imports to one of the few global regions where output is slumping. The EU sugar market is restructuring, with Europe's biggest sugar refiner Suedzucker planning to shut five plants next season in a bid to combat overproduction, which soared in 2017/18 after the EU scrapped output and export quotas. 

 
Apr 09 - Ivory Coast rains to boost cocoa mid-crop, winds raise concern 
Above-average rainfall last week in most of Ivory Coast’s cocoa regions should boost the April-September mid-crop but strong winds are worrying, farmers said on Monday, after weeks of dryness. Ivory Coast, the world’s top cocoa producer, is now in the rainy season, which runs from mid-March to late October. Abundant showers are expected to begin this month.

Apr 08 - Daily Cocoa Market Report

Hedge sales against cover-ups from the origin caused a temporary weakening of the market at the beginning of trading on Friday. The July19 forward price fell to GBP 1729, but this slight move to the south was not long in coming. As mentioned in the previous report, the longs have continued to enjoy the "long" position. The Commitment of Traders Report as at 2.4.19 shows an increase in the net long position by 12,529 lots to a total of 35,512 lots. At the end of the day there was a small plus of GBP 2 = GBP 1746 for the July 19 date.

Apr 08 - Colombia aid for coffee farmers falling short amid crisis - growers 
Nearly $50 million in government aid for Colombia's struggling coffee farmers is not enough to keep producers afloat amid a global price crisis, the country's growers' federation said on Friday. Coffee prices on the New York market have hovered at or below $1 per pound so far in 2019 and hit a fresh 13-year low this week as output surpasses demand on the global market. 

Apr 05 - World Pepper Weekly Bulletin, Week 1-5 April 2019 (IPC)
- Market this week showed mixed responses with Local market reported to show slight decrease for Viet Nam origin. India black pepper was traded positive in local market with an increase of 1% as compared with the previous week, averaging at USD 4,795 per Mt. Both Lampung black pepper and Muntok white pepper were traded stable this week with an average of USD 2,112 per Mt and USD 3,556 per Mt respectively. Malaysian black and white pepper continued to be traded at a stable rate with insignificant movement reported. Viet Nam black pepper was reported to have recorded a 2% deficit when compared with the previous week while Viet Nam white pepper was traded 1% less than the previous week. The average prices of Viet Nam pepper were reported to be at USD 1,863 per Mt for black pepper and USD 3,027 per Mt for white pepper. Sri Lanka black pepper was traded 1% higher than the previous week. Whilst China white pepper was traded at an average of USD 4,613 per Mt.
- Unlike the local market, the international market was reported to be rather quiet and stable with only India origin reported an increase. Following the local market India black pepper FOB price was reported to have increased by 1% when compared with the previous week and was traded at an average of USD 5,086 per Mt. Indonesia FOB prices for both black and white pepper were reported stable at an average of USD 2,578 per Mt and USD 4,194 per Mt respectively. FOB prices of black and white pepper from Malaysia origin remained unchanged and stable, averaging at USD 3,030 per Mt and USD 4,597 per Mt respectively. Viet Nam's FOB prices for black pepper 500 g/l, 550 g/l and white pepper were also reported stable. China white pepper was traded at an average of USD 4,813 per Mt internationally.
- Spot prices in US was reported to experienced a slight dip as new crop materials began to arrive, though Muntok spot price remained unchanged.

Apr 05 - Import of Pepper by MEXICO (IPC)
- Mexico, located in the southern of North America and the third largest country in Latin America, has been known for using heavy spices on its foods. Thus, pushing Mexico to become the top importers of pepper in Latin America. In the past three years, pepper import by Mexico had shown an increasing trend.
- In 2016, Mexico was reported to have imported a total of 3,184 Mt of pepper which comprised of 2,551 Mt of whole pepper and 633 Mt of ground pepper. With an average of 213 Mt per month for whole pepper and 53 Mt per month for ground pepper, Mexico recorded a total spending of USD 27.07 Million for its pepper import. The average price of the total pepper imported by Mexico was reported to be at USD 7,504 per Mt for whole pepper and USD 12,527 per Mt for ground pepper.
- 2017 saw the pepper import by Mexico spiked 58% when compared with previous year, totalling at 5,022 Mt of which 87% was whole pepper and 671 Mt was ground pepper. The monthly average import of pepper by Mexico in 2017 was reported to be 363 Mt for whole pepper and 56 Mt for ground pepper. Mexico was reported to have spent 2% more than the previous year for the pepper import which amounted to USD 27.5 Million. Thus, recording an average price of the total pepper imported by Mexico at USD 4,443 per Mt for whole pepper and USD 12,214 per Mt for ground pepper which indicated 41% and 3% deficit of the respective average price.
- For 2018, pepper import by Mexico was reported to have recorded decrease both in terms of quantity and values. The total pepper imported by Mexico decreased by 20 Mt and amounted to 5,002 Mt of which 86% was whole pepper while the other 704 Mt was ground pepper. The monthly average import of pepper in 2018 was reported to be 358 Mt per month for whole pepper and 59 Mt per month for ground pepper. The total spending of pepper import decreased by 30% in 2018, totalling at USD 19.3 Million. The average price of the total pepper imported by Mexico decreased by 35% and 19% respectively to USD 2,892 per Mt for whole pepper and USD 9,880 per Mt for ground pepper. The top five countries to have exported to Mexico in 2018 were reported to be Brazil with 4,162 Mt followed by United States of America with 313 Mt, Viet Nam with 295 Mt, Spain with 47 Mt and Costa Rica with 45 Mt.

Apr 05 - U.S. 'clamoring for avocados' after Trump threat to shut Mexico border
U.S. President Donald Trump's threats to shut the border with Mexico are now affecting what some might argue is the softest spot in bilateral relations - avocados. Fearing that a border lockdown would prevent Mexico from shipping the 80 percent of avocados that the United States consumes, processors and wholesalers have started stockpiling the prized fruit used in guacamole or as spread on toast.

Apr 05 - Indonesia blocks EU spirits, link seen to palm oil spat - industry
European spirits makers say they are facing difficulties exporting drinks to Indonesia amid tension after Jakarta said it was unhappy with an EU decision that palm oil should not be considered a green fuel. SpiritsEurope, which represents major European spirits makers and national associations, said on Thursday it had learnt from members with business in Indonesia that they were suffering delays in securing approval to import EU products into the country.

Apr 05 - World food prices steady in March - UN FAO
World food prices were broadly steady in March, with a jump in dairy prices offset by drops in cereal, vegetable oil and sugar price quotations, the United Nations food agency said on Thursday. The Food and Agriculture Organization's (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 167.0 points last month up from 166.8 in February.

Apr 05 - Daily Cocoa Market Report

...the upward trend continues! The May/July spread traded yesterday at its peak with a premium of GBP 67! A premium of GBP 67 for the May/July spread was last traded in 2012! The market was trading at around GBP 1300 at the time...and then rose to GBP 1750. From 2013 until the beginning of 2016 it only went north...to a level of GBP 2500! Are there any signs of a similar development? The significant increase since the end of March "screams" for a correction. Maybe it will come before the weekend. The industry has shortened the cover in the last few weeks and is waiting for "this" correction, which will then presumably prevent a massive price collapse by incipient price hedging purchases. Not to forget the speculators (the longs), who are more than happy with the current structure. In this sense, we wish you a pleasant weekend. PS. The down trend (see chart) that has persisted since May 2018 was broken yesterday!

Apr 05 - Brazil weighs offering coffee options to support prices - sources
The Brazilian government is considering offering put options to coffee producers as a way to shore up prices at a 13-year low and assure a minimum income for struggling farmers, two people with knowledge of the talks told Reuters on Thursday. The program, if approved, would give producers the right to sell their crops to the government at a fixed price, setting a floor for coffee prices in the world's largest coffee producer and exporter.

Apr 04 - Brazil coffee crop seen at 55 mln bags, good quality - Illy
Brazil's 2019 coffee crop, which is nearing the harvest period, should reach 55 million 60-kg bags, compared to the record output of 61.6 million bags in 2018, Italian processor Illy said on Wednesday. Of that total, Illy expects that the milder arabica variety will account for 38 million bags, with production of robusta coffee seen at 17 million bags. Brazil's government saw arabica production at 47.4 million bags and robusta output at 14.2 million bags in 2018.

Apr 04 - Brazil main cane region seen keeping sugar mix near record-low - consultancy
Mills in Brazil's main center-south cane growing region are predicted to allocate 36 percent of the 2019/20 crop to sugar production, near last season's estimated record low of 35 percent, Sao Paulo-based Archer Consulting said. While cane crushers continue to show a preference for ethanol, Archer's figure is below consensus predictions of a sugar allocation of just below 40 percent in a Reuters poll last month. Brazil's center-south region is forecast to produce 572 million tonnes of cane in 2019/20, Archer said.

Apr 03 - REUTERS TECHNICAL ANALYSIS Q2 OUTLOOK 2019 - WANG TAO

Oil and spot gold may extend gains moderately in Q2 before reversing the uptrend. Palm oil is expected to complete a corrective cycle by approaching a key resistance at 2,398 ringgit again.  Grains and cocoa are bullish, while base metals and the peaking spot palladium look very bearish. Special attention is drawn to dollar index which is poised to soar. To read the full report, click here.

Apr 03 - Daily Cocoa Market Report
The opening in London, which was expected to be firmer due to a weak GBP, was less significant than expected at GBP +5. As the day progressed, quotations soon left the next resistance at GBP 1710 (July 2019) behind; London rose for the seventh consecutive trading day, yesterday by 1.2% and closed at GBP 1722 (GBP +21) on a July 2019 basis. The May/Jul 19 spread also took its share of activity, reaching a premium of GBP +51 at a volume of 3,854 lots. Meanwhile, Ghana announces it will raise US$1.3 billion in Crop Loan for the new crop, in addition to the US$300 million 3-year loan for social and environmental projects that it recently signed. Remarkably, the amount is identical to the current season's, although the current price level is about GBP 100 lower.

Apr 03 - Tereos sees slightly higher EU sugar output in 2019/20
France's Tereos expects sugar output in the European Union to rise marginally in 2019/20 to 17.3 million tonnes from the previous season's 17.1 million tonnes, the company's executive vice-president Alexandre Luneau said on Tuesday. Luneau told the Kingsman Geneva Sugar Conference that this could mean the EU was a breakeven producer for the season, both importing and exporting 1.5 million tonnes.

 Apr 02 - Daily Cocoa Market Report
London opened unchanged, despite firmer quotations in NY on Friday. A slow but steady march north with almost 1% gain then began. Contrary to expected profit taking and hedge selling against origin cover, July 19 managed to cross the psychological barrier of GBP 1700, closing at GBP 1701 (GBP +15) and heading for the next resistance at GBP 1710 (July 19). After a slow start, NY appeared aggressive awell with speculative buying and up to 1.9% gains in the highs, despite the weaker US dollar. Arrivals last week were 32,000 mts in Côte d'Ivoire, 25,000 mts higher than in the previous season, a total of 1,697 million mt vs. 1,502 million mt year-on-year (+13%).

Apr 02 - Avocado shortages, virgin margaritas: Border shutdown would hit American palates
President Donald Trump's threat to shut down the U.S.-Mexico border would hit American consumers - in the gut. From the avocados on avocado toast, to the limes and tequila in margaritas, the United States is heavily reliant on Mexican imports of fruit, vegetables and alcohol to meet consumer demand. 

 
Apr 02 - Brazil raw sugar exports in March the lowest for the month since 2012
Brazil, the world's largest sugar producer and exporter, shipped only 955,000 tonnes of raw sugar to foreign buyers in March, the lowest amount for that month since 2012, according to Brazilian Trade Ministry data released on Monday. The small March export number is a result of reduced production in the 2018/19 season (April-March), when Brazil's center-south output fell by almost 10 million tonnes as mills opted to make more ethanol than sugar due to low global prices for the sweetener.

Apr 02 - Ivory Coast dry weather threatens cocoa mid-crop - farmers
A dry spell in some of Ivory Coast's cocoa regions could affect the size and quality of the April-September mid-crop, farmers said on Monday, after weeks of below-average rainfall in key growing areas. Ivory Coast, the world’s top cocoa producer, is entering the rainy season, which runs from mid-March to late October. Abundant showers are expected to begin this month.

 Apr 01 - Daily Cocoa Market Report
The July 19 quotation in London ended the month of March at GBP +14 at GBP 1686 on the monthly highs. It was a quiet trading day at the end of the month or quarter, the technical resistance (as mentioned in the previous report) was broken, the next target should be GBP 1700. Commitment of Traders as of 26.03.19 show a further reduction of the combined net long position from 11,115 lots, both exchanges are now only 23,451 lots net long. The speculative gross short position is now at 93,458 lots. After the final rise, the question remains as to when and to what extent the origin will show up again in the market. The industry, however, is holding back in a distinguished manner. Between October 18 - February 19 +11 % for beans and +2 % for cocoa products, exports from Côte d'Ivoire were above the previous year's level. 

Apr 01 - French sugar group Tereos to stagger farmer payments to season end 
French sugar group Tereos will pay sugar beet farmers in more instalments this season than previously as it struggles with a market slump that it expects will lead to a full-year loss. Tereos maintained a previously agreed guaranteed price of 25 euros ($28.05) per tonne of sugar beet for the October-September 2018/19 season, it said in a letter on Friday to cooperative members.

 
 Apr 01 -
Speculators raise cocoa net short position to July 2017 high 

Speculators raised their net short position in cocoa on ICE Futures U.S. in the week to March 26 to its largest since July 2017, U.S. government data show. Speculators increased their bearish stance on raw sugar and in arabica coffee futures and options, and slashed their net short position in cotton, the data from the U.S. Commodity Futures Trading Commission showed.

 
Apr 01 - Ukraine starts 2019 sugar beet sowing - ministry  
Ukrainian farmers have started sugar beet sowing, seeding the first 27,000 hectares of the commodity, the agriculture ministry said on Friday. Earlier on Friday, the ministry said the area under sugar beet could fall by 5 percent this year to 261,000 hectares.

Mar 29 - Int'l World Pepper Market Bulletin, Week 25-29 March 2019 (IPC)
- This week market showed mixed responses with India and Viet Nam origins reported to have experienced a deficit. In local market, India was reported to trade its black pepper with a deficit of 1% as compared with the previous week and record an average price of USD 4,769 per Mt. The price loss could be contributed to the weakening of Indian Rupees towards US Dollars. In local currency black pepper India was reported to be at an average of INR 328 per Kg. Lampung black pepper this week was reported to be traded stable with an average of USD 2,110 per Mt whilst Muntok white pepper experienced 1% increased and was traded at an average of USD 3,552 per Mt. Malaysia's black and white pepper continued till the end of March 2019 to be traded at a stable rate. Viet Nam black pepper in local market was reported to have recorded a 3% deficit as compared with the previous week at an average of USD 1,897 per Mt while Viet Nam white pepper recorded an even bigger deficit at 4% when compared to the previous week and averaging at USD 3,071 per Mt. This week saw Sri Lanka black pepper to be traded 1% higher than the previous week which could be contributed to the strengthening of Sri Lankan Rupee towards US Dollars.
- In the international market, India and Viet Nam remained to be the origins which experienced deficit. India's FOB price of black pepper experienced the same deficit by 1% when compared to the previous week. Following the local market trend Lampung black pepper's FOB price was reported stable whilst Muntok white pepper's FOB price experienced a 1% increase and were traded at an average of USD 2,575 per Mt and USD 4,189 per Mt respectively. FOB price of Malaysian black and white pepper continued to be traded stable at an average of USD 3,034 per Mt and USD 4,603 per MT respectively. Viet Nam FOB prices for its black pepper 500 g/l and 550 g/l experienced the same 2% deficit while its white pepper experienced 1% loss when compared with the previous week.
- US Market was reported to continue its stable trend and record an average spot price for Muntok White at USD 5,072 per Mt. Viet Nam's harvest season is currently in its second month with a lot of pepper still in the pipeline.

Mar 29 - Import of Pepper by EUROPE UNION (IPC)
- European Union, a unique economic and political union between 28 countries that together cover much of the continent, was created in the aftermath of the Second World War. With the initial purpose of increasing economic cooperation between six countries; Belgium, Germany, France, Italy, Luxembourg and the Netherlands, European Economic Community (EEC) was created in 1958. Since then, 22 other countries joined and created a huge single market. Started as a purely economic union this Community has evolved into an organization spanning policy areas from climate, environment and health to external relations and security, justice and migration, hence the name changed in 1993 to European Union.
- Pepper is well sought in E.U which is reflected in the high pepper import figures by the E.U. In the past 5 years pepper import by E.U was reported to follow an increasing trend. In 2014, E.U. imported a total of 102,491 Mt of pepper which comprised of 71,220 Mt of whole pepper and 31,271 Mt of ground pepper. The total expenditure of pepper imports by E.U. amounted to USD 860 Million for the year 2014, thus, recording an average price of the total pepper imported by E.U. at USD 8,581 per Mt for whole pepper and USD 7,971 per Mt for ground pepper. The top 5 importers of pepper in E.U. for 2014 were reported to be Germany with a total of 26,253 Mt, Netherlands with 15,433 Mt, United Kingdom 11,901 Mt, Spain 9,717 Mt and France with 9,574 Mt.
- In 2015, total pepper imported by E.U. reached a total of 105,479 Mt which comprised of 72,217 Mt of whole pepper and 33,262 Mt of ground pepper, recording an increase of 3% as compared to the previous year. E.U.'s total expenditure for pepper imports in 2015 amounted to USD 1 Billion which was an increase of 16% when compared to the previous year. 2015 saw E.U. recording an average price of the total pepper imported by E.U. at USD 9,961 per Mt for whole pepper and USD 8,439 per Mt for ground pepper which meant an increase of 16% and 6% respectively. The top 5 importers of pepper in E.U. for 2015 were reported to record a slight shift with United Kingdom being the second highest pepper importer.
- Pepper import in 2016 by E.U. was reported to have an increase of 2% as compared to the previous year, thus recording a total of 107,414 Mt comprised of 76,513 Mt of whole pepper and 30,901 Mt of ground pepper. E.U. was reported to spend 4% less than in 2015, thus recording a total of USD 961 Million which amounted to an average price of the total pepper imported by E.U. of USD 8,991 per Mt for whole pepper and USD 8,821 per Mt for whole pepper.
- E.U. imported 2% more pepper in terms of quantity for 2017 when compared with 2016. Thus, recording a total of 109,121 Mt which comprised of 78,695 Mt of whole pepper and 30,426 Mt of ground pepper. In 2017, E.U. saved around 20% of its pepper imports expenditures as its value of pepper imports dropped to USD 772 Million which recorded an average price of total pepper imported by E.U. at USD 6,808 per Mt for whole pepper and USD 7,772 per Mt for ground pepper. Germany continued to be the top pepper importers of pepper in E.U. with a total of 32,399 Mt of pepper which recorded a 9% increase when compared with 2016.
- 2018, E.U. total import of pepper amounted to 106,674 Mt, recording a decrease of 2% when compared to 2017. E.U. reported to have imported 76.779 Mt of whole pepper and 29,895 Mt of ground pepper. As the trend of global price kept on decreasing, E.U. spent 32% less for its pepper import expenditure as compared with 2017, thus, recording a total value of pepper import at USD 526 Million. Making its price of the total pepper import at an average of USD 4,542 per Mt for whole pepper and USD 5,931 per Mt for ground pepper.

Mar 29 - Brazil center-south sugar output to rise 11 pct - INTL FCStone
Brazil's center-south region will produce 29.5 million tonnes of sugar in the 2019/20 season, up 11 percent over the previous crop but less than projected previously, broker and analyst INTL FCStone said in a report on Thursday. FCStone had projected in January sugar production of 30.2 million tonnes in the new season that starts officially in April, although some mills are already harvesting.

Mar 28 - Daily Cocoa Market Report
Consolidation of prices was also yesterday's dominant trend. After an almost unchanged opening, the previous day's lows were tested, but prices soon found support on the 120-day moving average (GBP 1672 May 19). Afterwards, it slowly but surely went up, the gap in London from 10 days ago continued to close (now between 1655/1666 May 19). Although the May/Jul 19 spread narrowed slightly for the first time in days, the May contract still lies in a significant premium. The market closed at GBP 1653 Jul 19 / GBP +9. Côte d'Ivoire announced that the Mid Crop Farmgate price would remain unchanged at FCFA 750/kg, expected in view of the elections in 2020, although the world market has gained around 7.5% since the start of the main crop.

Mar 28 - Coffee growers, future crops at risk amid low global prices - producers
Global coffee growers are being forced into poverty by low international prices for the crop, farmers' representatives said at an international conference, warning the future of the industry is at risk. Coffee futures are near a 13-year bottom, trading as low as 93.45 cents per pound on Wednesday – far below the cost of production in most countries.
Click here to read full stories

Mar 27 - Late Brazil cane harvest may catch sugar traders off-guard

A likely delay in the start of Brazil's center-south cane harvest may catch some New York sugar futures players on the wrong foot, forcing those operators to cover positions, according to analysts and commodity traders. Although Brazil's 2019/20 center-south cane crop officially starts in April, many mills begin crushing earlier if their cane is ready. However, fields this year are developing late, after a dry spell in December and January, followed by ample March rain. Click here to read full stories.

Mar 26 - Ivory Coast weather offers mixed prospects for cocoa mid-crop
Above-average rainfall in Ivory Coast’s key cocoa regions last week will boost the April-September mid-crop, but dry spells in the country's centre have raised concerns, farmers said on Monday. Ivory Coast, the world’s top cocoa producer, is entering the rainy season, which runs from mid-March to late October.
"Rainfall will be more abundant in the coastal and southern regions starting in April," a government meteorologist told Reuters. He declined to be identified as he was not allowed to disclose the information. Click here to read full stories.

 Mar 26 - Brazil sugar giant Raizen raises $233 mln, agrees $500 mln credit line
Brazil's Raízen Energia SA, the world's largest sugar maker, raised 900 million reais ($233 million) using Agribusiness Receivables Certificates (CRA), the company's chief financial officer told Reuters on Monday. Guilherme Cerqueira, the CFO, said the company initially expected to earn 750 million reais from the operation but raised more due to demand, which exceeded expectations by more than double. Click here to read full stories.

Mar 25 - Speculators reduce net short position in raw sugar - CFTC
Speculators reduced their net short position in raw sugar on ICE Futures U.S. in the week to March 19, U.S. government data showed on Friday. Speculators lifted their net short position in cocoa to a 1-1/2 year high, reduced their bearish stance on arabica coffee, and cut back their bearish stance on cotton futures and options, the data from the U.S. Commodity Futures Trading Commission showed.
Click here to read full stories.

Mar 25 - Brazil's center-south sugar output seen rising 7 pct in new crop - poll Brazilian mills in the main sugarcane belt are expected to produce 7 percent more sugar in the new season that starts in April due to slightly better prices and the expectation for an increasing global sugar supply deficit, a Reuters poll showed on Friday. According to estimates from eight analysts and sugar groups, Brazil's center-south region should produce 28.4 million tonnes of sugar in the 2019/20 (April-March) season versus a 10-year low of 26.5 million tonnes in 2018/19, when millers sharply favored ethanol production to escape low global sugar prices. Click here to read full stories.

 Mar 25 - Low prices to eat into EU sugar beet area as planting starts Farmers in western Europe have begun sugar beet planting, with first indications pointing to a drop in area for the next harvest after a price slump fueled by the end of European Union production quotas. The market downturn has prompted Europe's biggest sugar refiner Suedzucker to announce the closure of several factories by 2020, which could lead farmers in affected zones to make further cuts to beet planting next year. Click here to read full stories.

Mar 25 - Thailand expected to delay start of cuts in rubber exports due to election
Thailand, the world's top natural rubber producer, will delay the start of planned curbs on exports of the commodity by over a month due to the general election in the country, officials from two other nations that are also making cuts said on Monday. Thailand, Indonesia and Malaysia, which together form the Tripartite Rubber Council (ITRC), had earlier this month said they would cut rubber exports by a total of 240,000 tonnes for four months from April under the so-called Agreed Export Tonnage Scheme (AETS), looking to boost flagging prices. Click here to read full stories.

Mar 22 - World Weekly Pepper Bulletin, Week 18-22 March 2019 (IPC)
- The market was reported rather positive this week with only China origin recorded a deficit. This week US Dollar weakened against most of the local currencies of pepper producing countries which contributed to the increase of the pepper price in most regions.
At the local level, black pepper India was traded 2% higher as compared to the previous week, averaging to USD 4,795 per Mt. Indonesia's black and white pepper experienced the same 1% increase as compared to the previous week. In local currency Indonesia's white pepper recorded a slight increase and by the end of the week it was traded at IDR 50,500 per Kg while Lampung black pepper remained at IDR 30,000 per Kg. Malaysia black and white pepper continued to be traded stable with an average of USD 2,300 per Mt and 3,870 per Mt respectively. Viet Nam black pepper was reported to record a slight 1% increase while its white pepper recorded a high 4% increase when compared to the previous week and was traded at an average of USD 3, 200 per Mt. Sri Lanka black pepper was also traded stable at an average of USD 3, 386 per Mt whilst China white pepper experienced 1% deficit to an average of USD 4,460 per Mt.
- In the international market, the positive trend continued with only China reported a deficit. FOB price of Indian black pepper was reported to increase by 2% when compared to the previous week. Lampung black pepper and Muntok white pepper were traded internationally with the same increase of 1% as compared to the previous week and recorded an average of USD 2,580 per Mt and USD 4,150 per Mt respectively. Malaysian black and white pepper FOB prices were reported stable. Viet Nam black pepper 500 g/l and 550 g/l were traded internationally with the same increase of 2% whilst its white pepper was reported to experience a slight 1% increase with an average of USD 3,515 per Mt. China white pepper in the international market was reported to have recorded a 1% deficit as compared to the previous week to an average of USD 4,660 per Mt.

Mar 22 - Import of Pepper by CHINA (IPC)
- China, known for its production of white pepper, mainly cultivates its pepper in the southmost province of China, Hainan. Though considered as one of the pepper producing countries, China imported a significant amount of pepper annually to compensate the consumption of its 1.4 Billion people. Due to high demand of the domestic consumption in comparison with the insufficient domestic production, China has become net importer of pepper, thus, import pepper figures higher than export pepper figures.
- In the past three years, pepper import by China had fluctuated quite significantly. The year 2016 saw China importing a total of 4,488 Mt which comprised of 4,021 Mt whole pepper and 467 Mt ground pepper. China spent a total of USD 44.85 Million for pepper import in 2016 which recorded an average price of the total pepper imported by China at USD 9,932 per Mt for whole pepper and USD 10, 518 per Mt for ground pepper.
- 2017 pepper import by China was reported to decrease by 14% when compared to the previous year. Thus, recording a total of 3,850 Mt which comprised of 3,212 Mt of whole pepper and 638 Mt of ground pepper. Decrease in quantity was followed by an even greater decrease in value, China spent 42% less in acquiring its pepper which recorded a total of USD 25.79 Million. The average price of the total pepper imported by China decreased to USD 6,459 per Mt for whole pepper and USD 7,901 per Mt for ground.
- In 2018, China was reported to experience increase in its pepper import. It recorded 53% spike in terms of quantity of pepper imported by China which equals to more than 2,000 Mt increase when compare to 2017. China recorded a 5,872 Mt of total pepper import in which 5,270 Mt of it was whole pepper. In addition, China spent a total of USD 27.47 Million for its pepper import which recorded 7% increase in terms of value as compared to the previous year. China's average price of the total pepper import continued to decrease to USD 4,413 per Mt for whole pepper and USD 7,004 per Mt for ground pepper.
- China pepper import in 2018 mainly came from the top pepper producing countries. The top 10 exporters of pepper to China were Malaysia with 2,684 Mt which contributed to 46% of pepper imported by China. The second highest pepper exporter to China was Indonesia with 1,077 Mt of pepper and followed with Viet Nam (830 Mt), Brazil (582 Mt), India (215 Mt), Sri Lanka (158 Mt), Hong Kong (123 Mt), Singapore (41 Mt), Italy (36 Mt), and United States with 34 Mt.

Mar 22 - Daily Cocoa Market Report

After the weak end of the previous day, it was an expected laborious affair on the cocoa market yesterday. July 19 traded in a narrow range of GBP 12 and with little volume the day ended at GBP +3 at GBP 1596. A second finish under the psychologically important GBP 1600 barrier, does this lead to further weakness or a breakout to the upside? The next few days will show. After days of good activity, the industry was largely covered yesterday, waiting (like all of us) for the next sign in the market.

Mar 22 - In post-coup election, Thai rice, rubber farmers rethink old divide
In the rice-growing heartland of Thailand's northeast, Kamol Suanpanya, 80, meets in the off season with fellow farmers at a community centre, where they discuss Sunday's election, the first after nearly five years of military rule. Like most in the area, Kamol will vote for Thailand's largest party, Pheu Thai, whose government was overthrown in 2014. Click here to read full stories.

Mar 22 - Brazil center-south sugarcane crush to rise - Copersucar
Brazil's sugarcane millers in the center-south are expected to increase crushingvolumes in the season starting in April on the prospect of higher agricultural yields, sugar merchant Copersucar said on Thursday. According to new projections, sugarcane processing in the world's largest sugarcane belt could increase by up to 3.1 percent in the next season, Copersucar said.
Click here to read full stories.

 Mar 22 - Colombia to give coffee farmers additional $19.4 mln in aid
Colombia's government will give an additional 60 billion pesos ($19.4 million) in aid to coffee farmers beset by low prices and struggling to make ends meet, the country's growers federation said on Thursday. Coffee prices on the New York market have hovered at or below $1 per pound so far in 2019. Last week, the most-active ICE arabica futures contract bottomed at a 13-year low of 94.65 cents per pound.
Click here to read full stories.

Mar 21 - Daily Cocoa Market Report

The continuation of the downtrend yesterday's trading day with close at GBP -29 Jul 19, below the psychological 1600 barrier (GBP 1593), was similar to the undecided and split Brexite debate: the final determination for a significant breakthrough is still lacking, despite a respectable traded volume and a slight acceleration in sales after the opening in NY. Pressure on quotations and the slightly weaker pound encouraged renewed price hedging buying by the industry. Little news from the origin, at best that Ghana has now succeeded in securing the expected additional US$ 300 million in crop financing to strengthen local cocoa production. Furthermore, the continuing rainfall, mainly in Ghana, points to a good development of the mid crop.

Mar 21 - Zimbabwe tobacco output set to dip 5 pct this year after drought

Zimbabwean farmers are expected to sell up to 240 million kg of tobacco this year, a 5 percent dip from 2018 due to drought, an industry official said on Wednesday at the start of a selling season that could help ease a severe dollar shortage. The opening of tobacco auctions traditionally leads to improved foreign exchange inflows in the southern African nation as buyers bring in dollars to purchase the crop. Click here to read full stories.

Mar 20 - Daily Cocoa Market Report

The slight downward movement continued yesterday with low volumes to the low of GBP 1613 (May 2019), which was reflected in partial purchases and price hedging by the industry. The market continues to believe in stable differentials, while "bearish" players tend to speak with a louder voice due to CCC's expected large forward sales in Côte d'Ivoire. This is also supported by the respectable, albeit not yet impressive, spread volume. We will see if the bears are right. We still see more air to the south in this weak market phase and the next support around GBP 1600 based on May 2019, resistance would then technically be expected again at GBP 1680. Closing price July 19 GBP -7 at GBP 1622.

Mar 20 - Colombian proposal to ditch NY coffee price may send buyers elsewhere A proposal by Colombian coffee growers' federation that producer countries sell their high-quality harvests untethered from the New York market price could encourage buyers to look for alternative providers, importers and exporters said. The federation in late February said it would discuss a possible unlinking from the New York benchmark price with other producers of high-quality arabica and buyers in an effort to sell coffee above production costs. Click here to read full stories.

Mar 20 - Nordzucker to close Swedish plant in modernisation programme Germany's second-largest sugar refiner Nordzucker will close its Arlov sugar factory in Sweden and concentrate Swedish production at its factory in Ortofta, involving an undisclosed number of job losses, the company said on Tuesday. Nordzucker will also invest 100 million euros ($114 million) to become more competitive in Sweden, it added without providing detail on capacity of the two plants. Click here to read full stories.

 Mar 20 - Ghana's Cocobod signs $300 mln loan to refinance bills, finance programs Ghana's Cocobod signed a $300 million three-year loan with several international lenders on Tuesday to refinance central bank-raised cocoa bills and finance production enhancement programs, one of the lenders said in a statement. Ghana said it was in talks with international lenders for such a loan in September. Click here to read full stories.

 Mar 20 - Target coffee to be all fair trade by 2022
All of Target Corp's flagship coffee brand Archer Farms will be certified fair trade by 2022, the company and Fair Trade USA told Reuters on Wednesday, a victory for that movement, which seeks to make sure producers are adequately compensated for their labor. Coffee futures are currently trading near 13-year lows, weighed down by a record-large Brazilian crop.
Click here to read full stories.

Mar 19 - Daily Cocoa Market Report
The large reduction of the net long position from a good 16,000 lots mentioned yesterday led to what is expected to be a firm opening. July 19 tested Friday's highs, a breakthrough failed and the market consolidated until light speculative selling pushed July 19 towards GBP 1620. Cautious price hedging buying by the industry prevented a further slide in prices, with July 19 ending the day at GBP +5 at GBP 1629. Should the market continue to come under pressure, we expect support at GBP 1600, resistance up at GBP 1644 and then the road would be clear to GBP 1700. Arrivals in Côte d'Ivoire are at 1,627 million mt vs. 1,460 million mt from 17/18 by 17 March (+11.4%).

Mar 19 - Mixed rain news in Ivory Coast raises concerns over cocoa mid-crop 
Abundant showers in most of Ivory Coast's cocoa regions last week augured well for the April-to-September mid-crop, farmers said on Monday, despite concerns over below-average rainfall in the centre of the country. Ivory Coast, the world’s top cocoa producer, is entering the rainy season, which runs from mid March to late October.
Click here to read full stories.

Mar 18 - Daily Cocoa market Report

It was a cautious trading day, now with July 19 as the new second month. Technical sales took the market to lows of GBP 1623, at which level slight industrial buying interest set in and prevented a further slide in prices. Closing July GBP 19 -22 at GBP 1624. Next big support we see technically at GBP 1600 / GBP 1580. Commitment of Traders as of 12.03. show a combined reduction of the net long position of 16,452 lots, now 55,747 net long. Price change in the reporting period GBP +55 / $ +80! New York is now only on a marginal long position of approx. 7,000 lots. At the March 19 date 120,000mt of cocoa were tendered / taken up (the largest quantity for a good 2 years). Of these 75% were Cameroon, 14% Nigeria and 7% Ivory Coast.

Mar 18 - Brexit crisis tipped for British asparagus as EU seasonal workers stay away

  For almost 100 years, Chris Chinn's family has farmed asparagus in the rolling hills of the Wye Valley in western England. This year, he fears uncertainty around Britain's departure from the European Union will keep his eastern European workers away and the asparagus will stay in the ground. Click here to read full stories.

Mar 18 - Egypt consumes over 3 million tonnes of sugar yearly

  Egyptians consume between 3.2 and 3.3 million tonnes of sugar per year while the country produces nearly 2.2 million tonnes of sugar from beets and canes yearly, the supply ministry said on Sunday. In response to the discrepancy between the consumption and production, President Abdel Fattah al-Sisi has instructed the ministry to develop the country's sugar companies, Supply Minister Ali Moselhi said, at a ceremony marking the expansion of the Delta Sugar Company in Egypt's Kafr el-Sheikh, according to a ministry statement. Click here to read full stories.

Mar 15 - Daily Cocoa Market Report
After a currency-related weaker opening and good support at the 10-day Moving Average / GBP 1664, the market entered an upward movement and recorded 19 new highs of the small upward trend seen in the end at GBP 1710 / May. However, no new buy orders have yet been triggered at this level...so unspectacular: closing price May GBP +4 at GBP 1681. closing price July 19 (now new 2 month) GBP -3 at GBP 1646. March 19 left the board yesterday with a premium of GBP +35, now expected what is actually tendered / received, estimates go from 60-100k mt! The May 19 / July 19 spread widened yesterday to GBP +35, resulting in a May / May 19 arbitrage of GBP +18! Values we have not seen since December 2017.

Mar 15 - Brazil cane seen posting first crop-over-crop increase since 2015-16 
Brazil's 2019-20 center-south cane crop that starts in April will likely exceed the current season's, the first increase from one crop to another since 2015-16, according to data from consultancy Agroconsult released on Thursday. Agroconsult expects the new crop to reach 575 million tonnes of cane from 570 million tonnes in 2018-19, but said current conditions may lead to as much as 590 million tonnes, if rains materialize in the coming days as expected. Click here to read full stories.

Mar 15 - Tereos says CFO and agricultural director leaving Brazil unit  The chief financial officer and agricultural director of Tereos Sugar and Energy Brazil are leaving the company, a spokesman for French parent Tereos Europe SA said on Thursday, a day after it announced the departure of the group's CFO.The spokesman declined to say when CFO Jairo Carolinski and Agriculture Director Jaime Jose Stupiello would be leaving the Brazilian unit or give a reason for their departures. Click here to read full stories.

Mar 15 - Pepper Weekly Market Report, Week 11-15 March 2019 (IPC)
- This week market continued to show mixed responses with Indonesia and Sri Lanka experienced slight deficit. At the local level, Indian pepper were traded 3% higher than the previous week averaging at USD 4,688 per Mt. The increase in Indian price could be contributed to the increase of price in the local currency which at an average of INR 326 per Kg, as well as the strengthening of INR towards US Dollar. In Indonesia, price of Lampung black pepper and Muntok white pepper were reported to have experienced the same slight 1% deficit as compared to the previous week and were traded at an average of USD 2,101 per Mt and USD 3,480 per Mt respectively. Malaysian origins continued to record a stable movement of its black and white pepper which averaging at USD 2,291 per Mt and USD 3,854 per Mt respectively. Viet Nam black pepper was traded 1% higher than the previous week whilst Viet Nam white pepper remained unchanged. Sri Lanka was reported to have recorded the same 1% deficit like Indonesia. Sri Lankan black pepper was traded at an average of USD 3,387 per Mt. The price decline of black pepper Sri Lanka was due to the price decline in local currency where it was traded at an average of LKR 605.21 per Kg. China white pepper was reported to have experienced a slight loss at the end of the week and was traded at USD 4,500 per Mt losing USD 25 per Mt when compared to the beginning of the week.
- The international market followed the same trend as the local market with Indonesia being the only origin which recorded a decrease. FOB price of Indian black pepper experienced an increase of 3% as compared to the previous week and was traded at an average of USD 4,975 per Mt. Both Lampung black pepper and Muntok white pepper from Indonesia experienced a 1% deficit when compared to the previous week. Malaysian black and white pepper were traded stable at an average of USD 3,025 per Mt and USD 4,588 per Mt respectively. Viet Nam was reported to record 2% increase for its black pepper 500 g/l and white pepper at an average of USD 2,175 per Mt and USD 3,475 per Mt respectively. Whilst its black pepper 550 g/l was traded stable. FOB price of China white pepper was reported to experience the same USD 25 per Mt loss when comparing the opening to the end of the week and it was traded at an average of USD 4,713 per Mt.
US market continued flat and price remained unchanged.

Mar 15 - Export of Pepper by THAILAND (IPC)
- Thailand known as one of pepper producing countries, contributes a minor portion of the world pepper export. In the past three years pepper export by Thailand had fluctuated quite significantly. Furthermore, Thailand had shifted from mainly shipping whole pepper to becoming a supplier of ground pepper to its importer partners in the world.
- In 2016, Thailand was reported to have exported a total of 322,081 Kg of pepper of which 66% was in the form of whole pepper amounted to 211,985 Kg. Furthermore, Thailand banked a total revenue from pepper export as high as USD 1,63 Million which resulted to an average price of the total pepper exported by Thailand at USD 3.69 per Kg for whole pepper and USD 7.73 per Kg for ground pepper.
- 2017 saw the shift of preference of pepper exported by Thailand. With total exported pepper reaching 278,351 Kg, 61% of it was in the form of ground pepper which amounted to 170,070 Kg. The total pepper exported by Thailand in 2017 recording a decrease of 14% when compared to the previous year. The interest of ground pepper from Thailand was reported to increase by 54% when compared to total export of ground pepper in 2016. Thailand recorded a slight increase of the total revenue of pepper export by 2% which reached USD 1.67 Million. Thus, recording an average price of the total pepper exported by Thailand at USD 5.58 per Kg for whole pepper and USD 6.27 for ground pepper.
- For the period of 2018, Thailand recorded a spike of 50% increase of the total pepper exported when compared to 2017 which reached as high as 417,935 Kg. The pepper exported in 2018 by Thailand 83% of it comprised of ground pepper which amounted to 347,365 Kg while 70,570 Kg of it was in the form of ground pepper. Thailand was also reported to have recorded an increase In term of pepper export revenue which reached a staggering 137% increase when compared to the previous year. With the total revenue of export pepper in 2018 amounted to USD 3.95 Million, Thailand recorded an average price of the total pepper exported at USD 14.01 per Kg for whole pepper and USD 8.53 for ground pepper.
- Thailand export of pepper in 2018 spread out to over 35 countries in the world. The top 10 importers of Thailand pepper were South Africa with 130,156 Kg, United States of America (72,727 Kg), Australia (24,421 Kg), Viet Nam (22,398 Kg), Netherlands (20,963 Kg), Cambodia (18,085), New Zealand (17,147 Kg), Germany (12,740 Kg), Denmark (12,498 Kg) and Republic of Korea with 8,974 Kg

Mar 14 - Daily Cocoa Market Report
In anticipation of today's March 19 trading day, it was an arduous and technical trading day. May 19 traded around the various moving averages (10/50/100/200 days), found good support at the 10 day MA at GBP 1665 / low yesterday GBP 1664 and good resistance at the 50 day MA at GBP 1690 / high GBP 1694. Close with GBP -7 at GBP 1677. March 19 continued to trade at a fixed premium of up to GBP +58 over May 19, May / July 19 spread yesterday also widened to GBP +30. We do not need to comment on the GBP and the currency market, the experts from the financial sector seem to be miles ahead of us.

Mar 14 - Sucden sees global sugar supply deficit widening to 4 mln tns 
French sugar trader Sucres et Denrees SA, or Sucden, expects a larger deficit in the world's sugar supply balance in the 2019-20 crop year (October-September), at around 4 million tonnes, due to projected decreases in output in India, Thailand and the European Union. Eduardo Sia, a sugar trader for Sucden in Brazil, said during a conference in Ribeirão Preto that sugar production in Thailand should fall around 10 percent in 2019-20 to 12 million tonnes, as cane farmers switch to other crops that could offer better returns.
  Click here to read full stories.

 Mar 14 - Brazil's 2019/20 sugar output to increase to 29.7 mln T - Datagro 
Brazil's center-south sugar production in the new cane crop that starts in April was forecast at 29.7 million tonnes, higher than an initial estimate of 26.4 million tonnes in October and above the 26.5 million tonnes produced in the current crop, consultancy Datagro said on Wednesday. Datagro also revised its estimate for center-south cane production for next season (2019/20) to 583 million tonnes, up from the 570 million tonnes, saying late rains have improved the condition of cane fields. 
Click here to read full stories.

  Mar 14 -  France asks Suedzucker to review factories closure plan
The French government asked Suedzucker on Wednesday to review its plans to scale down three sites in France, stating French workers should not have to bear the brunt of a restructure by the German sugar maker after an industry slump. A surge in output after the European Union abolished production quotas in 2017 and a 40-percent slump in prices since early 2017 in an oversupplied world market have left many EU companies struggling with plunging profits.
  Click here to read full stories.

 Mar 14 -  South Africa sugar tax to cut industry revenues, prompt reform - USDA 
South Africa's sugar tax could slash industry revenues and prompt restructuring of the country's sugar sector, the U.S. Department of Agriculture (USDA) said in a report published on Wednesday. The tax, introduced last April, has slashed the beverage sector's use of sugar by 30 percent, the USDA attache in Pretoria said, marking a major win for health advocates who have sought to curb sugar consumption in an effort to fight health epidemics of obesity and diabetes.
  Click here to read full stories.

 
Mar 14 -  Tereos makes changes at top as it faces EU sugar market shake-up 
French sugar group Tereos, which is forecasting falling profit this year due to an industry-wide slump, said on Wednesday it had reshuffled its management team, including the hiring of a new chief financial officer. A surge in output after the European Union abolished production quotas in 2017 and a 40 percent slump in prices since early 2017 in an oversupplied world market have hit profits at many European firms. 
  Click here to read full stories.

Mar 13 - Daily Cocoa Market Report

After a slightly weaker opening, the market tested the next support at GBP 1650 / May 19 for currency reasons. This led to smaller price hedge purchases by the industry, after which the market strengthened somewhat. After relatively good trading, May 19 then closed at GBP +18 at GBP 1684. We only saw good resistance at 100 days and the 200 day moving average at GBP 1676 and GBP 1684, respectively. The March/May 19 spread widened from GBP +36 to GBP +56 (closing at GBP +49) with low volumes. In contrast, open interest fell by 5,300 lots to a good 20,000 lots. Otherwise nothing new in the cocoa...The Brexit roller coaster is going into the next round after yesterday evening's vote again. We are now eagerly awaiting the 29.03, if it stays that way!

 Mar 13 - Some mills back to cane crushing in Brazil, ethanol demand strong
Six mills resumed crushing cane in Brazil's center-south region, the world's largest cane-producing area, ending the between-crops period early while demand for ethanol in the country continues strong, cane industry group Unica said on Tuesday. Brazil's new sugar season officially starts in April, but many mills that have cane ready for processing usually start before then. Most analysts expect a crop similar in size to the previous, at around 560 million or 570 million tonnes of cane.
Click here to read full stories

Mar 13 - Brazil, U.S. to discuss meat, sugar, ethanol trade - farm minister
Brazilian Agriculture Minister Tereza Cristina Dias said on Tuesday that she will discuss U.S.-Brazil trade in meat, sugar and ethanol in talks next week between officials of the two countries. Dias, who will travel with President Jair Bolsonaro to the United States, said one of her priorities is to reopen the U.S. market for Brazil's fresh beef exports, which were suspended almost two years ago over safety concerns.
Click here to read full stories

Mar 12 - Daily Cocoa Market report

With a range of just GBP 23, it was the lowest volatility in the cocoa market for over a month. May 19 traded uninspired between GBP 1659 and GBP 1682 and ended the day slightly weaker at GBP -5 at GBP 1666 due to currency movements. 3 days before the last trading day of March 19, the March / May 19 spread plummeted to a low of GBP -39, with an open interest of over 25,000 lots to be expected. The British Pound remains very strong in view of today's renewed vote. Official CCC arrivals on 28 February were 1.359 million mt vs. 1.424 million mt from 17/18 (+8.1%).

Mar 12 - Brazil cane industry group wants tariff-free access to U.S. sugar market
Brazil should seek a tariff-free sugar quota agreement with the United States similar to the tariff-free ethanol quota it offers to U.S. exporters of the biofuel, the new head of Brazil's powerful cane industry group Unica told Reuters. Evandro Gussi, who took over last month as the head of Brazil's main sugar and ethanol lobby, said in an interview that if a tariff-free sugar quota was not accepted, then Brazil should scrap the current system and tax all ethanol imports by a minimum 20 percent. Click here to read full stories.

Mar 11 - Daily Cocoa Market Report
As we wrote on Friday, the resistance we mentioned started at GBP 1678 (100 days moving average) and May 19 traded to highs of GBP 1677. Otherwise, it was a subdued day into a range of GBP 25 and a firmer close of GBP +20 at GBP 1671. Despite the extremely volatile daily movements, London ended the week almost unchanged. Commitment of Traders as of 05.03 show a massive reduction of the net long position of over 23,000 lots! Now 72,199 lots net long. While it was London profit-taking by the Specs / Funds, we saw an expansion of the speculative short position in New York. No wonder the market lost GBP 80 / $ 110 in the last reporting period.

Mar 11 - USDA cuts sugar stocks outlook, sees lower imports in 2018/19
The U.S. Department of Agriculture (USDA) on Friday reduced its outlook for sugar imports in the 2018/19 crop year as it slightly raised its domestic production forecast. The USDA put the closely watched stocks-to-use ratio at 13.6 for the crop year through end-September, down from last month's forecast of 14.6 and from 16.1 in 2017/18. Click here to read full stories

Mar 11 - Egypt's Canal Sugar inks financing deal worth $169 mln
Egypt's Canal Sugar said on Sunday it had signed a financing agreement worth a total of $169 million with a consortium of six banks. The funds, which consist of $100 million and 1.2 billion Egyptian pounds ($69 million), will finance the purchase, construction and operation of Canal's project in western Minya over the next six months until a $700 million long-term loan is finalised, the company said in a statement. Click here to read full stories

Mar 08 - Daily Cocoa Market report

The counter-reaction to the dramatic rise in prices from the previous day was not long in coming. After an unchanged opening, the May 19 forward traded well in the morning at GBP 40 below the previous day's highs. After the opening of New York, the market continued to come under pressure, and the May 19 session ended the day at GBP -44 at GBP 1646, and was thus able to recover for the most part. Next resistance was seen at GBP 1678 and GBP 1700, the next support should come at GBP 1620 / GBP 1600.
We wish you a nice weekend.

Mar 08 - Weekly Pepper Bulletin, week 4 - 8 March 2019 (WPB) 

Market this week continued showing a mixed response with only Viet Nam being reported to have recorded a positive trend. At the local level, black pepper India was traded 2% lower when compared to the previous week, averaging at US$ 4,547 per Mt. Though, Indian Rupee strengthen against US Dollar, it didn't help increase the pepper price in India which have dropped continuously since the beginning of February 2019. Lampung black pepper and Muntok white pepper also experienced a slight 1% deficit as compared to the previous week and were traded at an average of US$ 2,118 per Mt for Lampung black pepper and US$ 3,531 per Mt for Muntok white pepper. Both black and white pepper price in Malaysia were traded stable at an average of US$ 2,293 per Mt and US$ 3,858 per Mt respectively. Pepper prices in Viet Nam were reported to have bounced back up slightly. Black pepper in Viet Nam were traded 5% higher than the previous week. Whilst its white pepper experienced a bigger spike of 7% when compared to the week before. Sri Lankan pepper were reported stable this week at an average of US$ 3,418 per Mt.

 

FOB prices of all origins were reported to show the same pattern as its Local prices. Indian's FOB price of black pepper was reported to also experience a deficit of 2% and losing an average of US$ 83 per Mt when compared to last week average price. FOB prices of Lampung black pepper and Muntok white pepper also experienced a 1% deficit and were traded an average of US$ 2,585 and US$ 4,167 per Mt respectively. Malaysia reported its FOB price of black and white pepper at the same level as the previous week. Viet Nam FOB prices recorded increases between 3% - 5% for its pepper. Black pepper 500g/l was reported to have recorded a 4% increase while black pepper 550 g/l recorded a 5% increase. Traded at an average of US$ 3,395 per Mt, Viet Nam FOB price for white pepper experienced a 3% increase as compared to the previous week.

US market was reported stable and unchanged.

Mar 08 - Export of Pepper by MADAGASCAR (WPB)

Though it is not that well known as Brazil, India, Indonesia, Malaysia, Sri Lanka and Viet Nam, Madagascar is one of pepper producing country. Pepper in Maadagascar is mainly cultivated in the South-East of the island from the Nosy Varika to Fararangana with black pepper being the main product . Furthermore, as a pepper producing country, Madagascar is also reported to have exported a quite significant amount of pepper throughout the world.

In the past three years, pepper exported by Madagascar had fluctuated quite significantly. In 2016, Madagascar was reported to have exported pepper as high as of 2,027 Mt which comprised of 1,986 Mt in the form whole pepper and 40 Mt ground pepper. Madagascar banked a total of US$ 9.9 Million from its pepper export revenue in the 2016. Thus, recording an average price of the total pepper exported by Madagascar at US$ 4,913 per Mt for whole pepper and US$ 4,271 per Mt for ground pepper.

In the following the year, pepper export by Madagascar showed a declining trend both in term of quantity, value as well as its average price. In 2017, Madagascar exported 2% less than the previous year at a total of 1,983 Mt which comprised of 1,889 Mt of whole pepper and 94 Mt of ground pepper. In term of value, Madagascar recorded a 30% deficit as compared to 2016 at US$ 6.9 Million. The average price of the total pepper exported by Madagascar in 2017 dropped to US$ 3,463 per Mt for whole pepper and US$ 4,054 per Mt for ground pepper when compared to the previous year.

2018 saw the spike in Madagascar export of pepper with a 67% of increase in term of quantity and 33% increase in value. Madagascar exported a total of 3,313 Mt which comprised of 2,986 Mt of whole pepper and 328 Mt of ground pepper. Madagascar banked a total of US$ 9.2 Million from its pepper export revenue. This increasing trend was not followed by the average price of the total exported pepper by Madagascar which reported deficit to US$ 2,825 per Mt for whole pepper and US$ 2,467 per Mt for ground pepper.

Madagascar exported pepper to various countries in the world. As per 2018, Madagascar had exported to more than 35 countries all over the globe with the top five countries being United Arab Emirates with a total of 542 Mt of pepper followed by Pakistan with 452 Mt, France with 349 Mt, Belgium with 303 Mt and India with 272 Mt.

 

Mar 06 - Daily Cocoa Market report

After losses of GBP 170 in the last 2 weeks, consolidation dominated the market yesterday. The industry, once again, showed itself to be strengthened with price hedges in the market and the funds have continued to abandon smaller positions. May 19 ended yesterday's trading day at GBP +4 at GBP 1629. Speculators are focusing more on the 2 month, the volatile May / July 19 spread reached new lows yesterday at GBP +5, a weakening of around GBP 30 in the last few days. The March 19 date leaves the board on March 14. As always, when things go so fast, a turnaround in the market should not surprise much...

Mar 06 - Weak rains, heat, dry winds in Ivory Coast threaten cocoa mid-crop

Hot weather and well-below average rainfall in most of Ivory Coast's cocoa regions last week could jeopardise the quality and the size of the April-to-September crop, while a dry wind raised concerns elsewhere, farmers said on Tuesday. Ivory Coast, the world's top cocoa producer, is entering the rainy season. Click here to read full stories

Mar 06 - Top rubber producers to cut exports by 240,000 T for 4 mths from April

The world's top producers of natural rubber will curb exports by 240,000 tonnes for four months from April, they said on Wednesday, in a bid to prop up global prices for the commodity. The move was first announced in late February, following a meeting of the International Tripartite Rubber Council (ITRC), which comprises Thailand, Indonesia, and Malaysia. However, the exact volume, start date and timeframe were not announced at that time.  Click here to read full stories

Mar 05 - Daily Cocoa Market Report
From the very beginning, prices in London were pointing south. Sales against the long position were the trigger for the significant decline. The New York market followed in the afternoon with a similar trend. Industry again accompanied the market yesterday with price hedging purchases. On the lows of the day, however, speculators also showed up again with purchases in the market. What happens next, the next support point is GBP 1570. Presumably the industry, despite the fixed currency GBP/Euro, will continue to accompany the market and the speculators (the bulls) will probably also use this correction to buy... A look at the chart shows that everything has been there before. Closing price yesterday May19 GBP 1625/ - GBP 47.

Mar 05 - Brazil 2019/20 coffee crop seen 57.6 mln bags - Rabobank survey

Brazil is forecast to have a crop of 57.6 million 60kg bags in 2019/20, comprising 38 million bags of arabica and 19.5 million bags of robusta, Rabobank said on Monday after its crop survey. "Both arabica and robusta estimates came in above our expectations," Rabobank analyst Carlos Mera said after a tour through the Brazilian coffee heartland, during which more than 350 farms were visited. Click here to read full stories

Mar 04 - Daily Cocoa Market Report (HCCO)
After the losses of recent days, it looked long after Friday's consolidation at current levels. May 19 found good resistance at GBP 1700 (high GBP 1699), down we saw good support at the 100 Moving Average at GBP 1675. With no significant momentum, May ended the first trading day of the new year with moderate losses of GBP -11 at GBP 1672. In about 2 weeks, the London market lost around GBP 100 from its recent highs, and the 2-month arbitrage turned from GBP -35 to a small premium of GBP +2.

Mar 01 - Int'l Pepper Bulletin, week 25 Feb-1 Mar 2019 (WPB)
- In the end of February, the pepper market showed a mixed response. Farm gate prices of black pepper in India, Indonesia and Viet Nam are reported to decline by 2-3% this week. The decline in prices in India was caused by illegal pepper import that entered to India through border area. Furthermore, the decline of prices in Indonesia and Viet Nam were due to the considerable amount of pepper stocks in both countries because both countries just experienced a harvest period. Farm gate prices in Malaysia were reported to be stable, changes in prices in dollar terms were caused by the fluctuation in exchange rate of Malaysian ringgit against US Dollar. Sri Lanka was the only country that had shown a positive response this week. The farm gate price of black pepper in Sri Lanka was reported to have increased by 2% compared to last week.
- Furthermore, Muntok White Pepper prices in Indonesia this week declined by 2% compared to the previous week. The decline in Viet Nam's white pepper prices this week was reported to be quite high, reaching 7% decline compared to last week prices. The price decline was also caused by the large amount of pepper stock due to the harvest in early 2019 came to a full swing in some provinces. Farm gate price of white pepper in Malaysia was also reported to be stable as well as the farm gate price of black pepper. Stable prices in Malaysia could not be separated from the big role of Malaysian Pepper Board (MPB) which had several policies to protect pepper farmers in Malaysia. FOB Prices of pepper were also reported to have the same trend as farm gate prices of pepper. Declining of FOB Prices occurred in all pepper producing-countries except Malaysia. Furthermore, this week the Spot Prices in New York (USA) were reported to be stable.

Mar 01 - Import of pepper by SOUTH KOREA (WPB)
- As a pepper consuming-country, South Korea meets its demand through imports from pepper producing-countries. The unique climate, geographical conditions, and community culture in South Korea have caused pepper not to be cultivated intensively in this country. In 2016, South Korea imported 5,470 MT of pepper consisting of 5,019 MT whole pepper and 451 MT ground pepper. The value of pepper imports by South Korea in 2016 was US$ 47.7 million. Thus averaging a total import price of US$ 8,562 per MT for whole pepper and US$ 10,628 per MT for ground pepper.
- Furthermore, in 2017, South Korea imported 12% higher than 2016, which was as much as 6,153 MT pepper consisting of 5,658 MT whole pepper and 494 MT ground pepper. Even though there is an increase in quantity, pepper imports by South Korea have decreased by 17% in value. The value of pepper imports by South Korea in 2017 was reported at US$ 39.5 million which averaging a total import of US$ 6,354 per MT for whole pepper and US$ 7,254 per MT for ground pepper. Thus, recording an decrease of 26 % for whole pepper and 32% for ground pepper when compared to the price disbursed in 2016.
- In 2018, South Korea imported fewer amounts of pepper than in 2017. In quantity, South Korea reportedly imported 5,607 MT of pepper consisting of 5,085 MT whole pepper and 522 MT ground pepper. The total import quantity by South Korea in 2018 was recorded to have declined by 9% compared to the total import quantity in 2017. The value of pepper imports by South Korea in 2018 was US$ 23 million, a 42% decline compared to import value in 2017. - The average total price of imported pepper by South Korea was recorded at US$ 4,009 per MT for whole pepper and US$ 5,180 per MT for ground pepper.
Whole pepper imported by South Korea in 2018 was mostly shipped from Viet Nam with a quantity of 4,336 MT, followed by other countries such as Malaysia (627 MT), India (78 MT), Indonesia 35 MT, Thailand (2 MT), Brazil (2 MT) and Cambodia (2 MT). South Korea also imported whole pepper from other countries such as the USA, South Africa and Sri Lanka, but in very small quantities (less than 1 MT).
- Furthermore, the ground pepper imported by South Korea in 2018 was mostly shipped from Viet Nam, with a quantity 465 MT, followed by Malaysia (31 MT), USA (11 MT), Sri Lanka (4 MT), Japan (4 MT), Thailand (4 MT), India (1 MT), and Brazil (1 MT). South Korea also imports ground pepper from other countries such as Indonesia, China, Singapore and Germany, but in very small quantities (less than 1 MT).

Mar 01 - Daily Cocoa Market report (HCCO)
The expiration of the March19 options yesterday caused the market to weaken further. Until noon, May19 in London was trading just above GBP 1700. With the start of trading in New York (weak US$ vs. GBP), speculators in NY increased selling pressure, which also drove the market further south in London. These were sell stop orders, the long holder, which brought the market to a price of GBP 1676. At the end of the day, there was a minus of GBP 36 = GBP 1683. New York closed at US$ 2247 / - US$ 66, putting February behind us. Will there be further sales against the long position today, before the end of the week? Despite the decline of the market, the Euro prices remained almost unchanged "fixed GBP to the Euro"...The industry has accompanied the market in the last days and made up reduced cover again.

Mar 01 - Global sugar surplus forecast for 2018/19 revised down - ISO 

The global sugar surplus is expected to be 641,000 tonnes in the 2018/19 season, down from a previous forecast of 2.17 million, the International Sugar Organization (ISO) said on Thursday. The inter-governmental body said the smaller surplus was mainly due to a downward revision in production forecasts for Brazil and the European Union, although the forecast for Thailand's output was revised up. Click here to read full stories.

Mar 01 - ICCO sees global cocoa surplus of 39,000 T in 2018/19 

The International Cocoa Organization (ICCO) on Thursday forecast there would be a global cocoa surplus of 39,000 tonnes in the 2018/19 season. The projected surplus was slightly higher than the median forecast of 30,000 tonnes in a Reuters poll earlier this month. Click here to read full stories.

Feb 28 - Daily Cocoa Market Report (HCCO)
Hedge sales against cover-ups from the origin caused the market to collapse by the afternoon. London (May19) fell to GBP 1697, New York to US$ 2266. The industry also showed isolated signs of buying price hedges on the low prices yesterday. This in combination with speculators' purchases was the reason for the fixing in the last 2 hours.  At the end of the day, GBP 1719 was a plus of GBP 10. In New York, May19 closed at US$ 2313, a plus of US$ 37.

Arrivals in Côte d'Ivoire reached 24.2.19 - 1,519,000 mt. In the previous year it was 1,469,000 mt. 

Feb 26 - Iran buys Indian raw sugar for the first time in 5-yrs - trade sources

Indian traders will export raw sugar to Iran for March and April delivery, five trade sources said, the first Indian sugar sales to Tehran in at least five years as Iran struggles to secure food supplies under U.S. sanctions. Iran is buying the sugar from India to use up the rupees it has received for oil sales to India, the world's third-largest oil user. Iran is blocked from the global financial system, including using U.S. dollars to transact its oil sales, by sanctions imposed by the United States. Click here to read full stories.

Feb 26 - Ivory Coast cocoa farmers expect rains to boost mid-crop

Above average rains last week in most of Ivory Coast’s cocoa growing regions were expected to boost the development of the April-to-September mid-crop, farmers said on Monday. Ivory Coast, the world’s top cocoa producer, is in the dry season which runs from November to late February, when scarce downpours are crucial for cocoa crops to withstand the heat. Click here to read full stories.

Feb 26 - Daily Cocoa Market Report (HCCO)
The massive increase in net long position, as reported yesterday, showed effect. After a slightly firmer opening, prices fell later in the day. Increased selling pressure came from the New York market in the afternoon. It was a combination of selling against the long position and hedging against cover-ups from the origin. The industry showed itself in the late afternoon with price hedging buying in the market. Technically, nothing has changed. South it will give increased support from GBP 1620, north the first resistance point is unchanged at GBP 1795. There are no fundamental reasons driving the market in one direction or the other, technical chart points, so the speculators will continue to set the direction of the market !

Feb 25 - Speculators lift net short position in cocoa in week to Feb. 5 - CFTC

Speculators hiked their net short position in cocoa on ICE futures U.S. in the week to Feb. 5 to the highest in over a month, U.S. government data showed on Friday in a report whose publication had been delayed by the partial government shutdown. Speculators reduced their bearish stance on arabica coffee, slightly trimmed their net short position in sugar, and reduced their bearish stance in cotton futures and options, the data from the U.S. Commodity Futures Trading Commission showed. Click here to read full stories

Feb 25 - Daily COCOA Market Report (HCCO)
Was that it with the correction? Prices on Friday moved within a range of GBP 1727/1768. The closing price was GBP 1744/ + 11. In New York, the important level of US$ 2300 was breached at US$ 2336, but could not be maintained. At the end of the day, the price stood at US$ 2288/ + 13. As expected, the net long position (Commimtment of Traders Report as at 19.2.19 increased strongly by 13,177 lots/ Total 61,201 lots). This only affects the London market, New York will come in the next few days... London has strengthened in the week to 19.2.19 around GBP 53.

Feb 22 -  World Pepper Bulletin, week 18-22 February 2019 (WPB)
This week market showed a rather mixed response with only Sri Lanka and China origins recorded a slight increase. At the local level black pepper prices took a rather negative movement. India black pepper were reported to experience a deficit of 3% as compared to the previous week and was traded at an average of US$ 4,745 per MT. This deficit could be contributed to the lowering of the price of black pepper in local currency as well as the weakening of the INR towards US Dollar. Indonesia was reported to have recorded a 1% deficit in its Lampung black pepper prices whilst its Muntok was traded stable at an average of US$ 3,621 per MT. Malaysia origin was reported to trade its peppers relatively stable for both black and white pepper and averaging at US$ 2,297 per MT and US$ 3,864 per MT respectively. Viet Nam black pepper was traded 3% lower than the previous week at an average of US$ 1,873 per MT. However, Viet Nam white pepper was traded relatively stable as compared to the previous week at an average of US$ 3,079. Both Sri Lankan black pepper and Chinese white pepper were traded higher by 2% and 1% respectively as compared to the previous week.
FOB Prices of most origins were also reported to have recorded deficit with only China origin to have recorded a slight increase. Following the trend in local level, FOB price of India black pepper recorded a deficit of 3% as compared to the previous week at an average of US$ 5,026 per MT. FOB Price of Indonesian black pepper recorded a slight deficit of 1% whilst Muntok white pepper were reported stable at an average of US$ 4,269 per MT. Malaysian black and white pepper were also traded relatively stable as compared to the previous week. Viet Nam origins continues its downward trend in the FOB prices with black pepper 500 g/l, 550 g/l and white pepper all recorded a deficit of 4% when compared to the previous week. China white pepper's FOB prices became the only product to have recorded a slight increase of 1% at an average of US$ 5,095 per MT.
Due to recent arrivals of cheaper materials US spot prices of black pepper were reported to been pushed lower this week.

Feb 22 - Import of Pepper by JAPAN (WPB)
Japan is one of Asian countries that imports pepper in high quantity. Most of the pepper imported into Japan is used for domestic consumption, while the rest (in very small amounts) is used for business purposes such as re-export business. In 2016, Japan imported 8,741 MT of pepper consisting of 5,131 MT of whole pepper and 3,610 MT ground pepper. In that period the import value of pepper by Japan was recorded at US$ 105 million.
- In 2017, Japan imported 6% lower than the previous year. The total imports of pepper by Japan in 2017 were recorded at 8,193 MT consisting of 4,670 MT whole pepper and 3,524 MT ground pepper. The value of pepper imports by Japan in 2017 was recorded at US$ 73.6 million, recording a decline of 31% compared to the pepper imports value in 2016. The decline in the imports value occurred due to declining of pepper prices. Furthermore, in 2018 Japan imported 9,485 MT of pepper, recording a 16% increase in quantity compared to 2017. Imports of pepper by Japan in 2018 consisted of 5,428 MT of whole pepper and 4,057 ground pepper. The total import value for the period was US$ 55.2 million. In 2018, despite experienced an increase in quantity, imports by Japan continued to decline in value. In 2018 Japan's import value was recorded to have declined by 25% compared to 2017 values.
- In 2018, 50% of the whole pepper imported by Japan comes from Malaysia with a quantity of 2709 MT. Japan also imports pepper from other pepper producing countries such as Indonesia with 28% shares (1,533 MT), Viet Nam with 11% shares (599 MT), India with 9% shares (469 MT), and other countries. As for ground pepper, 41% or 1,681 MT of ground pepper imported into Japan shipped from Viet Nam. Furthermore, Japan also imported ground pepper from Indonesia with 38% shares (1,549 MT), Malaysia with 19% shares (764 MT), and other countries.?

Feb 22 - Cocoa daily market report (HCCO)
I think we can speak of a correction now. In the last 3 days the London market lost GBP 75 (1780/1705) at its peak. The closing price yesterday was GBP 1733/ - 16. First and foremost it was profit taking by the "longs" that pushed the market south. It should not be forgotten, however, that the "longs" largely want to maintain their position and continue to "roll" from March19 into May19 , which in recent days brought a profit of around GBP 25 in the books. The March19/May19 spread was traded yesterday at a premium of GBP 15-32. It remains to be seen whether the selling pressure will continue today...The industry would be well advised to slowly start dealing with the next price ideas. With this in mind, we wish you a pleasant weekend.

Feb 22 - Top rubber producers plan to curb exports by up to 300,000 T to boost prices 

The world's top producers of natural rubber said in a joint statement on Friday they will curb exports by up to 300,000 tonnes in a bid to prop up global prices for the commodity. The curb, formally known as the Agreed Export Tonnage Scheme (AETS), was announced following a meeting on Friday of the International Tripartite Rubber Council (ITRC), which comprises Thailand, Indonesia, and Malaysia. Click here to read full stories.

Feb 22 - S&P Global Platts seeks revised U.S. ethanol pricing method amid trader concerns 

S&P Global Platts said on Thursday it was proposing changes to the assessment methodology behind its Chicago ethanol price, which is used broadly as a benchmark for supply deals around the country, after receiving feedback from traders. The proposed change would expand the daily cash assessment to include barge, rail and truck deliveries at the Chicago pricing hub of Argo, not just storage tank transactions. Click here to read full stories.

Feb 21 - New Zealand finds fruit fly that could threaten crops, ramps up monitoring 

New Zealand on Thursday set up hundreds of traps around the country's largest city of Auckland after finding a second Queensland fruit fly, a species that poses a risk to the country's multi-billion dollar horticulture sector. A solitary male Queensland fly was collected from a fruit fly surveillance trap and formally identified on Wednesday, the Ministry of Primary Industries said in a statement. Click here to read full stories.

Feb 21 - Ivory Coast on track for record 2018/19 cocoa crop 

Ivory Coast is still on track for a record crop of 2.2 million tonnes for the 2018/19 season versus 2 million tonnes the previous season, mostly due to new plantations, cocoa exporters and pod counters said on Wednesday. The main crop, from a season that runs from October to March, is expected to reach a record 1.7 million tonnes, up from 1.5 million tonnes last season. Click here to read full stories.

Feb 21 - Cocoa Daily Market Report (HCCO)
Consolidation or the first tender sign of a correction? Yesterday, too, there were price hedges against cover-ups from the origin as well as profit taking by the longs which drove the market south. In London, slight support was seen close to GBP 1730, a low yesterday of GBP 1734. Closing GBP 1749/ - 12 -0.69%.  The New Yorker is the weaker one in the last days, dropped by 1.42% yesterday, here there is support from US$ 2300. The "exporters" in the Ivory Coast expect a record harvest 2018/19 of 2.2 mln to.! Such statements of course come at the "right" moment to push prices down... "why should Ivory Coast be interested in higher prices?

Feb 21 - Glencore 2018 ags earnings fall 23% on drought, trade war

Global trading house Glencore saw EBITDA in its agriculture business fall 23% in 2018 as as global drought lowered grain volumes and pressured margins, with its business further hit by the US-China trade war, the company said Wednesday. Adjusted EBITDA for the business unit came in at $484 million, compared with $631 million the year before, while Glencore’s attributable share of profits was down 79% to $21 million. The group processed 43.2 million mt of grains, 5% less than the year before following drought weather which cut global grains output.

“Poor crop sizes in Australia, Argentina and Brazil (sugarcane), dry spells in Europe over the summer and trade tensions between the US and China impacted volumes and compressed margins in various distribution chains,” Glencore said.

Glencore saw its oil and oilseeds volumes rise 5% on the year to 31.1 million mt on the back of US-China trade war, but prices were down 5% on the year. Its sugar unit processed 9% less sugarcane in 2018, or 4.5 million mt, while raw sugar futures fell 25% last year to hit the unit with a double whammy. Despite the fall in earnings for its agriculture business, total group’s total EBITDA was up 8% to $15.8 billion, although that figure was short of analyst expectations.

On top of that, Glencore announced a fresh $2 billion shares buyback program for 2019 and pledged to cap coal production following investor pressure. Glencore’s share price opened higher on the day to trade 1.2% higher at time of press.

“Market sentiment and its influence on commodity prices represented a tale of two halves, relatively buoyant market conditions over H1 2018 were tempered by US/China trade uncertainty and the somewhat related concerns on the sustainability of Chinese growth over H2,” the company concluded.

Feb 20 - Cocoa daily market report (HCCO)
Price hedging sales against cover-ups from the origin caused the market to weaken yesterday. This, however, with very low sales of approx. 1,500 lots by noon! Large movement also further in the "roll" of the respective position, long/short from March19 into May19. A few days ago still with a discount of GBP 30 traded, the spread yesterday with a premium of GBP 18. Similar applies to the May19/July19 spread which was traded yesterday in the peak with a premium of GBP 37! The inverse structure has widened, with March 19 trading at GBP 66 premium to March20 (1778/1712). Again the hint, an inverse structure supports the "longs" but the "rolling" brings money into the till...but as the saying goes: everything has an end only the sausage has two...every trend has a correction, you only have to use it. This applies to the "longs" and the "shorts". Closing price GBP 1761/ - 17.

Feb 20 - Suedzucker to close Polish sugar plant in restructuring 

Europe's largest sugar refiner Suedzucker plans to close a 50,000 tonne-a-year production plant in Poland, it said on Tuesday, part of a restructuring programme to counter a slump in sugar prices. The company also recently announced it will close sugar factories in Germany and France, but said on Tuesday the latest closure means it will have achieved its output reduction target. Click here to read full stories.

Feb 20 - Republican backlash against Trump EPA pick fueled by 'biofuel reset' 

EPA acting administrator Andrew Wheeler rejected a proposal from his staff that would have reduced the ambition of the nation’s biofuel policy over the next three years, arguing the targeted range it included for annual ethanol consumption was too low, according to two sources familiar with the matter. The decision, made in December as part of the EPA's effort to reset targets set by Congress in 2007 closer to market reality, has become a source of concern among the oil industry’s Republican legislative backers, some of whom have threatened to withhold support for Wheeler's confirmation as permanent EPA head over his views on ethanol. Click here to read full stories.

Feb 20 - Brazil's coffee crop gets beneficial rain, but more is needed 

Recent rains have improved prospects for Brazil's 2019 coffee season after below-average precipitation in December and January, but more is needed to guarantee a good crop, producers and analysts said. Brazil's leading coffee-producing region of South Minas Gerais received around 50mm (1.96 inches) of rain last week and at least 100mm more is forecasted until the end of the month, according to Refinitiv's Agriculture Weather Dashboard. Click here to read full stories.

Feb 20 - Speculators lift net short position in sugar in week to Jan. 29 - CFTC 

Speculators increased their net short position in raw sugar on ICE Futures U.S. in the week to Jan. 29, U.S. government data showed on Tuesday in a report whose publication had been delayed by the partial government shutdown. Speculators slightly increased their bearish stance on arabica coffee, trimmed their net short position in cocoa, and lifted their bearish stance in cotton futures and options, the data from the U.S. Commodity Futures Trading Commission showed. Click here to read full stories.

Feb 19 - Sugar group Tereos gets financial reprieve until 2022 

French sugar group Tereos, which has been hit by a slump in the sugar market, said on Monday it had secured a loan that would give the co-operative a financial reprieve as it hopes for a rebound in prices. In December, Tereos - which last season became the world's second largest sugar maker - plunged to a first-half loss of almost 100 million euros ($113 million) and said it expected to be in the red across its full financial year for the second year running. Click here to read full stories.

Feb 19 - Ivory Coast dry spell could damage cocoa mid-crop - farmers 

Most of Ivory Coast's cocoa growing regions saw no rainfall last week, raising fears for the April-to-September mid-crop, farmers said on Monday. Scarce showers during the dry season, which runs from November to late February, are crucial for cocoa crops to withstand the heat in Ivory Coast, the world's biggest cocoa producer. Click here to read full stories.

Feb 18 - Cocoa prices seen edging up despite small global surplus - poll

World cocoa prices are forecast to rise slightly this year despite a small global surplus, a Reuters survey of seven analysts and traders showed on Friday. ICE New York cocoa prices were expected to end the year at $2,450 a tonne, up eight percent from Thursday's close, according to the median forecast of responses. Click here to read full stories.

Feb 15 - World Pepper Bulletin, Week 11-15 February 2019 (WPB)
- This week market showed a rather negative trend with only Sri Lanka recorded an increase. In local level, black pepper in India was traded with a slight deficit of 1% as compared to the previous week at an average of US$ 4,912 per Mt. The strengthening of India's Rupee didn't affect the price of black pepper because the price in local currency experienced a constant drop and was traded at INR 348 per Kg. Indonesia was reported to record a deficit of 2% for their black pepper trade when compared to the previous week whilst its Muntok white pepper was traded relatively stable. Malaysia origin was reported to record a stable trade of its black and white pepper locally and was traded at an average of US$ 2,300 per Mt for black and US$ 3,870 per Mt. for white. As their market just resumed after Lunar New Year holiday season, Viet Nam and China were reported to trade their pepper at an average of US$ 1,933 per Mt for Viet Nam black pepper, US$ 3,080 per Mt. for Viet Nam white pepper and US$ 4,869 per Mt. for China white pepper. Sri Lanka, though its local currency weakened toward US Dollar, recorded an increase of 2% in its black pepper price as compared to the previous week and was traded at an average of US$ 3,258 per Mt.
- Following the trend in local level, FOB price of India was also recorded at 1% lower than the previous week and was traded with a loss of US$ 46 per Mt from the previous week. Lampung black pepper's FOB price had also recorded a loss of 2% when compared with the previous week and was traded at an average of US$ 2,684 per Mt whilst Muntok had also recorded a stable trade this week. Malaysia's black and white pepper FOB prices were also reported stable this week. Viet Nam's FOB prices for black 500 g/l and 550 g/l as well as white pepper were traded flat since the beginning of the week at US$ 2,175 per Mt, US$ 2,275 per Mt. and US$ 3,525 per Mt. respectively. China white pepper FOB price was also reported relatively flat at an average of US$ 5,069 per Mt.

Feb 15 - Export of Green Pepper from INDIA (WPB)
- The pepper industry is a prospective industry and has good opportunities in the future. Pepper products are currently more commonly known in the form of black pepper, white pepper, and powdered/crushed/ground pepper. However, besides being processed into black pepper, white pepper and pepper powder, pepper can also be processed into various products such as pepper oleoresin (discussed at Prices Bulletin No. 3/2019), pepper oil, dehydrated green pepper, and freeze-dried green pepper. Value added pepper products are reported to have a fairly good selling value and have their own market in the pepper industry.
- Dehydrated Green Pepper:
Dehydrated green pepper is obtained through controlled drying and the green color is maintained by activating the polyphenol oxidase enzyme. Pepper used for making dehydrated green pepper is prepared which is still in fresh condition, dark green, the seeds are hard but the fruit is not yet ripe. After the pepper is harvested, it must be processed immediately to avoid the pepper becoming black due to the activity of the polyphenol oxidase enzyme. It is recommended that 3-4 hours after harvesting the fruit should be processed immediately, if not directly processed, the pepper can be soaked in 2% salt solution for approximately 12 hours. Apart from being able to maintain the quality of the pepper, soaking also functions to remove dirt that is carried away during harvesting.
Dehydrated green pepper has a comparative advantage that white pepper and black pepper do not have, which is a natural green color resembling fresh pepper. Dehydrated green pepper after being dissolved in water will resemble freshly harvested green pepper. Good quality of dehydrated green pepper is characterized by its natural green color, relatively intact form, the aroma and taste are close to the original, free from contamination of impurities and microorganisms.
The levels of oil and piperine are chemical components that contribute to the taste and aroma of dehydrated green pepper. Piperin is the main compound that gives a peppery spicy flavor, while essential oil is a volatile component that contributes to aroma. The components of the dried green pepper essential oil are dominated by monoterpenes, including limonen, mirsen, sabinen, α-pinen, β-pinen, α-filandren, and δ-3-karen, while the components of essential oils of white pepper and black pepper are dominated by sesquiterpenic compounds, including α-karyophilene, β-kariofilen, and β-farnesen. The aroma of dried green pepper is better than white pepper and black pepper because of the high content of monoterpenes so that it can produce the optimal quality of pepper aroma. The monoterpen group generally gives a scent of the top-peppery note, sesquiterpen provides a pepper aroma, while the oxygenated sesquiterpen compounds are the body of the pepper aroma.
- Freeze-Dried Green Pepper:
Freeze-dried green pepper is processed from green pepper with a moisture content of about 66%, through the freezing process at low temperatures (-30 oC) - (-40 oC) and high vacuum pressure. Freeze dried green pepper has a moisture content of 2-4 percent and very light weight. The product has a natural color (bright green to greenish), the aroma and texture are much better than other dry green pepper either dried by manual drying (sun drying), solar dryer or oven.
This freeze-dried green pepper has rehydrated character, so it can be used directly or destroyed first to be added to every food recipe. To restore the pepper's texture to the natural texture, freexe-dried green pepper is rehydrated by soaking in hot water for 20 minutes. Freeze-dried green pepper is widely used in instant soup products, dry food and cheese, because it has special characteristics and a soft taste. India is one of the few countries that produce and market freeze-dried green pepper, and Europe is the main importer of freeze-dried green pepper.
- Export:
India, known for their value added products, had exported significant quantities of dehydrated and free-dried green pepper in the last three years. From 2016 upto 2018, the total export of dehydrated and freeze-dried green pepper from India had fluctuated quite significantly.
- In 2016, India exported a total of 609,286 Kg of green pepper which 88% of it comprised of dehydrated green pepper. On avereage, India exported 44,882 Kg of dehydrated green pepper and 5,892 Kg freeze-dried green pepper each month in 2016 with the highest quantity was reported at 109,558 Kg (January) for dehydrated green pepper and 11,860 Kg (June) for freeze-dried green pepper. India banked a total of US$ 10.2 million from its export revenue of green pepper in the year 2016 which then recorded an average price of total green pepper exported by india at US$ 15.32 per Kg for dehydrated and US$ 28.36 per Kg for freeze-dried.
- The year 2017 saw a spike of 50% of the total export of green pepper from India with 833,812 Kg in dehydrated and 80,406 Kg in freeze-dried.Individually it recorded an increase of 54% for ddehydrated and 13% fro freeze-dried. India exported an averaged of 69,484 Kg of dehydrated and 6,701 Kg of freeze-dried each month of 2017 with the highest quantity recorded at 149,610 Kg (February) for dehydrated and 12,510 Kg ( August) for freeze-dried. In 2017, India reported to record a total revenue of green pepper export at US$ 15 million which was an increase of 47% as compared to the previous year. India recorded an average price of total export of green pepper at US$ 15.30 per Kg for dehydrated and US$ 28.19 per Kg for freeze-dried.
-As of November 2018, India had exported a total of 754,102 Kg green pepper which comprised from 664,119 Kg dehydrated and 89,983 Kg freeze-dried. Thus, recording loss of 8% of the total export of green pepper by India when compared with the previous year. Furthemore, India banked over US$ 9.6 million from its export revenue of green pepper as of November 2018 which meant a loss of 27% in terms of value when compared with the previous year. Furthermore, the average price of the total export of green pepper also experienced a significant deficit ass it was reported at US$ 11.56 per Kg for dehydrated and US$ 22.20 per Kg for freeze-dried.
- In 2018, the top five countries of export destination of India's green pepper were Germany with 330,623 Kg followed by the Netherland with 61,200 Kg, France 55,762 Kg, USA 55,432 Kg and Poland with 55,010 Kg.

Feb 15 - Cocoa Daily Market Report (HCCO)
London was undecided until the opening in New York where the journey should go. After one up and down until noon a steady fortification followed. The first point of resistance of GBP 1735/37 was not broken again. Should this level be breached, the way would be free for another fortification, so say the "technicians". As can be heard, the industry accompanied the market yesterday, on both stock exchanges, the market with price hedging purchases. Here there seems to be concern about further fixing. London and New York are in neutral waters...not yet overbought. However, we have had a sideways move/consolidation for 3 days now. A possible breakout from this zone would be possible before the weekend, but in which direction is the question? Closing price GBP 1718 / + 4.

Feb 15 - Brazil mills likely to delay cane harvest due to weather, ethanol stocks 

Mills in Brazil's center-south are likely to start harvesting the new sugar cane crop later than usual to allow cane fields to take advantage of late rains while holding excess ethanol stocks after over-producing last year, analysts and millers said. Brazil's 2019/20 cane crop in the main center-south region officially starts in April, but mills normally enter fields in March, particularly to profit from better ethanol prices at the end of the inter-harvest period. Click here to read full stories.

Feb 15 - Suedzucker's Saint Louis to cut sugar output in France 

French sugar company Saint Louis Sucre said on Thursday it will end production at two factories in France as part of a wider restructuring plan at its German parent Suedzucker, Europe's largest sugar refiner. Saint Louis Sucre will stop production at its Eppeville and Cagny sites, while production will continue at two other French sites, a spokeswoman said. Click here to read full stories.

Feb 14 - Cocoa Daily Market Report (HCCO)
Yesterday the consolidation continued at the current levels, around the 200 day moving average at GBP 1705. May 19 traded within a manageable range of GBP 28 and ended the day slightly firmer at GBP +6 at GBP 1714. From the fundamental side, we received news that Côte d'Ivoire is changing its system from daily auctions to direct marketing, similar to Ghana...All unofficially, of course, on how and when nothing has been reported yet. Activity in the grading room in London is limited before the March 19 deadline, which expires in one month. Many so-called "Regrades" from Cameroon explain why the arbitrage is still where it has been for some time. 

Feb 14 - COFCO Int'l eyes sugar assets in Brazil - softs head 

COFCO International, the trading arm of Chinese state-owned food group COFCO, is looking to invest in sugar assets in Brazil, Global Softs president Marcelo de Andrade said on Wednesday. "We are now looking more in Brazil," he said on the sidelines of a major sugar conference in Dubai. "If I can find cheap assets yes (there may be deals) but I'm not in a rush to buy." Click here to read full stories.

Feb 13 - Coffee prices seen rising nearly 25 pct by year-end - poll

Arabica coffee prices will rise nearly 20 percent by the end of 2019 as Brazil's shift to an off-year in its biennial production cycle helps swing the world into a global deficit, a Reuters poll of nine traders and analysts showed on Tuesday. The survey participants anticipate a global deficit of 1 million 60-kg bags in 2019/20, according to the median forecast, compared to estimates of a 4.25 million-bag surplus for 2018/19. Click here to read full stories.

Feb 13 - Ivory Coast aligns cocoa sales system with Ghana - CCC sources 

Ivory Coast has started selling cocoa directly to the world's top traders, switching from auctions to a system already used by the region's other major cocoa producer Ghana, two senior sources at the cocoa regulator said. Ivory Coast sold 400,000 tonnes using the new system in the first week of February, the sources at the Coffee and Cocoa Council (CCC) told Reuters. Click here to read full stories.

Feb 13 - Brazil sugar firm Sao Martinho sees weather hurting new cane crop 

Brazilian sugar and ethanol company Sao Martinho SA believes below-average rains in December and January over the country's main cane belt will take a toll, possibly preventing any production increase next season. Sao Martinho, which is among the five largest sugar companies in Brazil, cut on Tuesday its estimate for cane crush growth in the new season that starts in April to 5 percent from 10 percent expected in December due to dryer weather in Brazil's center-south. Click here to read full stories.

Feb 12 - Sugar prices to rise as global market swings into deficit - poll

World sugar prices are forecast to rise this year with the market swinging into deficit in the 2019/20 season, a Reuters survey of 10 analysts and traders showed on Monday. Raw sugar prices were expected to end the year at 14.60 cents per lb, up 15 percent from Friday's close, according to the median forecast of responses. Click here to read full stories.

Feb 12 - Ivorian cocoa farmers hope for more rain to boost mid-crop

More downpours are needed to strengthen Ivory Coast’s April-to-September cocoa mid-crop despite above-average rains in most growing regions last week, farmers said. Ivory Coast, the world’s top cocoa producer, is in the dry season, which runs from November to late February. Scarce showers during this period are crucial to the development of the mid-crop. Click here to read full stories.

Feb 12 - Brazil coffee exports jump 20 pct in January - Cecafé association 

Brazil exported 3.05 million 60-kg bags of green coffee in January, a record volume for the month and 20.3 pct more than for the same period last year, exporters association Cecafé said on Monday. Volumes have been rising consistently since mid-2018 because of a record coffee crop of more than 60 million bags last year in the world's largest producer and exporter of the commodity. Click here to read full stories.

Feb 11 - France's Cristal Union says 'golden age' for EU sugar producers over 

Cristal Union, France's second-largest sugar group, said on Monday the "golden age" for European Union sugar producers was over and that it expected significant changes in the EU sugar sector. "Prices will recover at some point, but we don't expect them to make it to the level we enjoyed under the quota system," Cristal Union Chief Executive Alain Commissaire said in his opening remarks at the Dubai Sugar Conference. Click here to read full stories.

Feb 11 - Nordzucker agrees to buy Australia's Mackay Sugar 

Germany's second largest sugar refiner Nordzucker said on Friday it had agreed to purchase 70 percent of Australia's Mackay Sugar Limited, giving it access to Australian and wider Southeast Asian markets. Nordzucker said in November it was in talks to buy Mackay as part of the German company's international expansion. Click here to read full stories.

Feb 11 - Speculators boost net short position in sugar in week to Jan. 8 - CFTC 

Speculators increased their net short position in raw sugar on ICE Futures U.S. to its biggest since October in the week to Jan. 8, U.S. government data showed on Friday, in a report whose publication had been delayed by the partial government shutdown. Speculators flipped to a small net long position in cocoa, reduced their bearish stance on arabica coffee, and increased their net short position in cotton futures and options, the data from the U.S. Commodity Futures Trading Commission showed. Click here to read full stories.

Feb 11 - Dubai's Al Khaleej sugar re-starts after shutdown 

Dubai’s Al Khaleej Sugar, the world's largest port-based refinery, said on Sunday it had re-started operations on Thursday after a shut down since mid-December on account of weak demand in white sugar export markets. "For most independent refiners, 2018 was not a happy year," Jamal al-Ghurair, managing director of Al Khaleej said at a press briefing a day ahead of an annual gathering of the global sugar industry, the Dubai Sugar Conference. Click here to read full stories.

Feb 08 - Weekly Pepper Bulletin, Week 4-8 February 2019 (WPB)
- Celebrating Chinese New Year, markets in China and in Viet Nam were reported to be inactive. The price of black pepper at the farm level (farm gate prices) and FOB this week was reported to be relatively stable with only slight increase reported, except in Indonesia which had decreased by 3%. The price of black pepper in Indonesia had decreased due to the absence of purchasing activities. - Based on reports from pepper farmers in Lampung, stocks were sufficient yet there was no positive response from the market. Thus, causing the price of black pepper in Lampung to decline this week. The external factors which influenced the declining in prices in Lampung were the pepper harvest in Viet Nam, and several gardens in Thailand and Sri Lanka which have begun to harvest even though they haven't reached their peaks yet. Furthermore, prices in India and Sri Lanka were reported to slightly increase, both farm gate prices and FOB prices in each country increased by 1% compared to last week's prices.
- As with black pepper, the white pepper market was relatively stable this week. Farm gate price and FOB price of white pepper in Indonesia and Malaysia were reported to increase slightly by 1%. The increase in price at both countries was due to the strengthening of Indonesian Rupiah and Malaysian Ringgit against the US Dollar.

Feb 08 - Import of pepper by AUSTRALIA (WPB)
- Australia, the country down under, imported a quite substatial amount of pepper from producing countries. In the past three years Australia, which almost equally exported in the form of whole and ground, shown a fluctuated movement in terms of quantity. The past three years saw 4% increase of the total quantity and 42% deficit of the total value of the pepper imported by Australia.
In 2016, Australia imported a total of 3,689 Mt in which comprised of 52% whole pepper amounted to 1,916 Mt. Thus, recording an average of 307 Mt per month with the highest quantity recorded in July with 419 Mt. At the same year Australia spent a total US$ 36 million to import their pepper which resulted in an average buying price of US$ 10,245 per Mt for whole pepper and US$ 9,269 per Mt for ground pepper.
- For 2017, Australia recorded an 9% increase in term of the total quatity of pepper imported as opposed to the previous year which amounted to a total of 4,012 Mt in which comprised of 1,968 Mt whole pepper and 2,044 Mt ground pepper. Australia imported an average of 334 Mt pepper per month which peaked in September 2017 with 603 Mt. in 2017, the total pepper bought by Australia was worth US$ 27 million which was 24% less when compared with 2016. Australia recorded an average buying price of US$ 7,043 per Mt for whole pepper and US$ 6,716 per Mt for ground pepper.
- At the end of 2018 saw Australia importing a total of 3,828 Mt of pepper in which 2,103 Mt of it in the form of whole pepper. This resulting to a decrease of 5% as opposed to the previous year. In 2018, Australia which imported an average of 319 Mt per month,recorded the highest import number in January 2018 with 528 Mt. Australia in total bought US$ 21 million worth of pepper in 2018. Thus, recording 24% less expenditure on pepper import when compared to the previous year. Over the year 2018, Australia reported an average buying price of US$ 5,866 per Mt for whole pepper and US$ 5,076 for ground pepper.
- Over the past three years, the top major contributors for Australia's pepper were Viet Nam, South Africa, Indonesia and India. Viet Nam contributed to 53%, 55% and 60% of the total imported pepper for 2016, 2017 and 2018 respetively. In 2018, Australia imported pepper from Viet Nam as much as 1,263 Mt, South Africa 224 Mt, India 208 Mt and Indonesia 112 Mt.

Feb 08 - Cocoa Market report (HCCO)
If the May 19 date broke through the psychological resistance at GBP 1700 ( high GBP 1702) in the morning, the expected selling pressure came into the markets shortly before the opening of New York.

- May 19 ended the day at GBP -17 at GBP 1670 due to technical selling and an overbought market at GBP 1650 lows. The 05.02 and 06.02 gap between GBP 1664 /1666 was also closed. The main focus yesterday was again on the near March/May 19 spread, with a smaller volume, it continued to trade at a significant premium of GBP 29, a remarkable reversal of around GBP 40 in 4 days. Triggers are likely to be increased arbitrage LDN / NY trading, rolling of unfixed source contracts and a larger short position of a trader in March 19.
Regarding arbitrage, we expect increased speculator activity before the First Notice Day March 19 NY next Thursday.

Feb 08 - U.S. to end tomato trade pact with Mexico, threatening duties 

The United States will resume an anti-dumping investigation into Mexican tomatoes, the Commerce Department said on Thursday, withdrawing from a 2013 managed trade deal that U.S. growers and lawmakers say has failed. The move opens a new source of trade friction between the United States and Mexico, Commerce said it was giving the required 90-day notice before terminating the six-year-old agreement not to pursue anti-dumping cases against fresh tomato imports from Mexico. Click here to read full stories.

Feb 07 - Coffee consumption in Brazil rose 4.8 pct in 2018 - industry group

Coffee consumption in Brazil during the 2018 commercial year (Nov-Oct) grew 4.8 percent from a revised 2017 estimate, to the equivalent of 21 million 60-kg bags of green coffee, industry group Abic said on Wednesday. Abic said it changed its methodology for estimating Brazilian coffee consumption to exclude data from informal sale points such as on-farm shops and street markets. Click here to read full stories.

Feb 06 - Colombia coffee crop to recover in 2019, buoyed by weather, federation says

Colombia's arabica coffee crop will recover in 2019 as a mild El Nino weather phenomenon aids flowering, the head of the country's growers federation said on Tuesday, but low prices remain a worry. The country produced 13.6 million 60-kg bags of washed arabica last year, down 4.5 percent from 14.2 million in 2017, as growers struggled with heavy rains and dismal international prices. Click here to read full stories.

Feb 05 - Global coffee exports rise 0.9 pct in December - ICO  

Global coffee exports rose 0.9 percent year on year in December to 10.43 million 60 kg bags, data from the International Coffee Organization (ICO) showed on Monday. For the first three months of the 2018/19 season, which began on Oct. 1 last year, coffee exports rose 8.1 percent to 30.91 million bags. 

Feb 05 - Indian cane farmers owed $2.8 bln as sugar prices fall -trade body

India's cane farmers are owed 200 billion rupees ($2.8 billion) by sugar mills in the world's second-biggest producer of the sweetener as refined sugar prices have fallen below the cost of production, a leading trade body said on Monday. Farmers in key cane-growing states are protesting the delay in cane payments from the mills, and that may force the government to provide more incentives to the ailing industry ahead of general elections due by May. Click here to read full stories.

Feb 05 - Ivorian cocoa farmers expect plentiful mid-crop despite heat

Ivory Coast's cocoa farmers expect an abundant April-to-September mid-crop, they said on Monday, following a week of above-average rainfall in most of the country's cocoa regions. Ivory Coast, the world's top cocoa producer, is in the midst of the dry season which runs from November to late February. Scarce showers during this period are crucial to the development of the mid-crop. Click here to read full stories.

Feb 04 - Global sugar deficit in 2019/20 seen at 1.36 mln tonnes - Green Pool

The world sugar market is on course for a shortfall of 1.36 million tonnes (raw value), analyst Green Pool said on Friday in its first forecast for the 2019/20 season. It also trimmed its projection for the global surplus in 2018/19 to 2.64 million tonnes from a previous forecast of 3.60 million. Click here to read full stories.

Feb 01 - Weekly Pepper Bulletin, Week 28 Jan - 1 February 2019 (IPC)
- With Chinese New Year holiday on the brink, market this week showed a rather positive response with Viet Nam the only origin recorded a deficit. At the local level, price for black pepper India was reported to experience a slight 1% increase as compared to the previous week and traded at an average of US$ 4,914 per Mt. Whilst in Indonesia, Lampung black pepper and Muntok white pepper were traded stable. Malaysia also recorded an increase of pepper prices for its black and white pepper by 1% as opposed to the previous week and traded its pepper at an average of US$2,281 and US$ 3,838 per Mt respectively. With arrival of new crops expected to reach its peaks during March, Viet Nam's prices were squeezed even more at the end of the week, thus recording deficit of 2% for black pepper and 6% for white pepper. Meanwhile Sri Lanka black pepper and China white pepper were reported to experience increase by 1% and 2% respectively as opposed to the previous week.
- The international prices also showed a similar trend with Viet Nam again the only origins which recorded a deficit. FOB price for black pepper India was at an average of US$ 5,195 which was an increase of 1% as opposed to the previous week. Indonesia black and white pepper followed the local level trend and were traded stable. As for Malaysian black and white pepper prices, they were traded 1% higher as opposed to the week before. After last week substantial price drop, deficits were also recorded for Viet Nam's black pepper 500 g/l, 550 g/l and white pepper which amounted to 2%, 3% and 2% respectively. Low price and the upcoming Tet holiday season forced Viet Nam's farmers to hold on their stocks . FOB price for China white pepper recorded an increase of 2% and were traded at an average of US$ 5,123 per Mt. Though the 35-days long shutdown in US has been temporarily ended on Friday 25 January 2018, the US market remained inactive. Situation in US resulted in all origins local currencies grew strong against US dollar this week which would attribute to the increase of prices in some origins.

Feb 01 - Export of Pepper by BRAZIL (IPC)
- Brazil as the second biggest pepper producer in the world just behind Viet Nam, has also become the second biggest exporter of pepper in the world. In the past three years, Brazil which mainly produce black pepper, has kept increasing its export number substantially. In the last three years Brazil's total pepper export quantity had reached an increase of 134% as opposed to 2016 albeit recording a deficit of 21% in terms of values.
- In 2016, Brazil exported a total of 31,085 Mt pepper with 99% of it in the form of whole pepper thus recording an average of 2,590 Mt per month of exported pepper. In the same year Brazil recorded a total revenue of pepper export as high as US$ 246 Million which then recorded an average price of total pepper exported by Brazil at US$ 7,982 Mt for whole pepper and US$ 2,237 Mt for ground pepper.
- 2017 saw a significant spike in number of peppers exported by Brazil. Brazil was recorded to have exported a total of 59,501 Mt pepper in which 99% of it was in the form of whole pepper, thus, recording a 91% increase as compared to the previous year in 2016. On average in 2017, Brazil exported 4,958 Mt of pepper each month with the highest number at 8,848 Mt which was recorded in October 2017. The total value of pepper exported by Brazil in 2017 was reported at US$ 274 Million which recorded a spike of 11% as compared to 2016. The average prices of total pepper exported by Brazil for 2017 were US$ 4,622 per Mt for whole pepper and US$ 2,140 per Mt for ground pepper.
- At the end of 2018, Brazil had exported a total of 72,580 Mt pepper in which 99% of it was in the form whole pepper. Thus, recording an increase of 134% and 22% when compared to year 2016 and 2017 respectively. On 2018 Brazil which averagely exported around 6,048 Mt per month, recorded the highest export number on November at 12,791 Mt. Brazil banked a total amount of US$ 195 Million as its pepper export revenue in 2018 which was a deficit of 21% and 29% as opposed to the 2016 and 2017 respectively. Throughout the 2018 the average prices of total pepper exported by Brazil were US$ 2,689 per Mt for whole pepper and US$ 1,954 per Mt for ground pepper.
- Over the year of 2018 Brazil had exported pepper to more than 80 countries around the world including fellow pepper producing countries with the only exception Indonesia. Furthermore, the top five destinations were Germany at 14,677 Mt which contributed to 21% of total exported pepper by Brazil followed by United States with 10,764 Mt, Viet Nam with 9,763 Mt, Morocco with 6,541 Mt and Mexico with 4,285 Mt.

Feb 01 - Suedzucker to close two German sugar factories in restructuring 

Suedzucker, Europe's largest sugar refiner, said on Thursday it plans to close two German sugar production plants as part of a restructuring programme announced this week. The plants are in Brottewitz and Warburg and together produce around 200,000 tonnes of sugar annually, a Suedzucker spokesman said. Click here to read full stories.

Jan 30 - Suedzucker to cut output, close plants after sugar price slump 

Suedzucker, Europe's largest sugar refiner, said on Tuesday it planned to cut capacity and close sugar production plants to save about 100 million euros ($114 million) a year following a slump in sugar prices. The company said it planned to reduce sugar production volumes by up to around 700,000 tonnes per year. It currently produces about 5.9 million tonnes of sugar a year, according to its website. Click here to read full stories.

Jan 30 - Buyer of SAF-Cacao assets wins Ivory Coast 2018/19 export permit 

Ivory Coast's cocoa marketing board has granted an export licence to the company that bought the assets of SAF-Cacao, a top exporter until it was liquidated in July, a document reviewed by Reuters shows. This represents a milestone for the world's biggest cocoa producer, which has toughened conditions for export licences to avoid a repeat of defaults linked to a disastrous 2016/17 season, when world market prices fell 40 percent. Click here to read full stories.

Jan 30 - Honduran coffee exports expected to miss forecast by 11.5 pct 

Honduran coffee exports will sharply miss their forecast for the 2018/2019 harvesting season due to a global price slump that has prompted local producers to smuggle out coffee or abandon their farms, a senior industry executive said on Tuesday. Exports in Honduras, Central America's top coffee producer, are expected to fall 11.5 percent compared with an earlier estimate, said Omar Funez, the technical manager of national coffee institute IHCAFE. Click here to read full stories.

Jan 25 - Singapore's Olam plans $1.6 bln in divestments; to sell rubber, fertiliser units 

Singaporean commodity trader Olam International said on Friday it will sell its sugar, rubber, wood products and fertiliser businesses and other assets to release $1.6 billion of cash to reinvest as part of a six-year strategic plan. The company plans to invest $3.5 billion in the period to 2024 in 12 prioritised businesses, including edible nuts, cocoa, cotton, coffee, grains and animal feed, it said in a statement. Click here to read full stories.

Jan 25 - Int'l Pepper Bulletin, Week 21-25 January 2019 (IPC)
- The market showed negative trend this week with only India reported to remain stable. At the local level, prices were reported to record a deficit between 1% up to 5%. In Indonesia black pepper was traded 1% lower than the previous week while Muntok white pepper experienced more pressure due to some part already started their first harvest resulting a 2% deficit when compared to last week. Malaysia also recorded a 1% deficit both for black and white pepper which could be contributed to the local currency weakening over the US dollar. The biggest deficit this week was recorded in Viet Nam with a 5% deficit for black pepper and 4% deficit for white pepper. The loss experienced by Viet Nam was as result of new crops coming in and also factored in the weakening of Vietnam Dong towards US Dollar. Sri Lanka black pepper and China white pepper were reported to have recorded the same 1% deficit as compared with the previous week. 
- Following the same trend as in the local level, India's FOB price was reported to remain stable whilst others recorded deficit between 1% up to 11%. Indonesian FOB price this week also recorded the same amount of deficit as in local level, black pepper recorded a loss of 1% while Muntok white pepper took 2% deficit. Malaysian black and white pepper as well as China white pepper recorded the same amount of deficit by 1% as compared with the previous week. Viet Nam's loss this week was even greater for the FOB price than on local level, recording 8% and 11% deficit for the FOB price black pepper 500 and 550 g/l respectively. Whilst Viet Nam white pepper FOB price was reported at 6% lower when compared with the previous week at an average of US$ 3,598 per Mt.
- US market remained flat as the shutdown continued to its 34 days with no clear end in sight as this has become the longest shutdown in US history. 

Jan 25 - Import of Pepper by TURKEY (IPC)
- Turkey, famous for being located partly in Asia and partly in Europe, has always been known for incorporating various of spices in its cuisine resulting in a significant number of spice import to fulfil the domestic consumption.
- Pepper Import by Turkey showed a significant fluctuation in the past three years with 2017 being the most apparent. In 2016, Turkey imported a total of 4,228 Mt pepper in which 97% of it was in the form of whole pepper resulting in an average of 352 Mt per month of pepper imported. Total value of imported pepper by Turkey in 2016 was reported to be US$ 7.8 million. Thus, in 2016 the average prices of the total imported pepper by Turkey were US$ 1,837 per Mt for whole pepper and US$ 2,278 per Mt for ground pepper.
- In 2017, Turkey's pepper import recorded a significant spike of 33% in terms quantity and 48% in terms of value as compared with the previous year. Turkey recorded a total of 6,288 Mt of pepper imported in 2017 which consisted of 6,116 Mt whole pepper and 172 Mt ground pepper resulting in an increase of 49% for whole pepper and 30% for ground pepper as opposed to the previous year. In 2017, Turkey's total value of imported pepper was US$ 15.1 million. The average price of total imported pepper by Turkey were US$ 2,410 per Mt for whole pepper and US$ 2,000 per Mt for ground pepper. Turkey's highest import of pepper in 2017 was recorded in June with 858 Mt.
- As of November 2018, pepper import by Turkey amounted to 3,581 Mt which consisted of 3,500 Mt whole pepper and 81 Mt ground pepper. Thus, recording a staggering deficit of 40% in terms of quantity as compared to the same period in 2017. In terms of value of the imported pepper by Turkey as of November 2018, which banked a total US$ 6.9 million, it reported an even sharper deficit of 51% as opposed to the same period of the previous year. In 11 months of 2018, Turkey's average prices of total imported price were at level of US$ 1,958 per Mt for whole ground and US$ 1,391 for ground pepper.

Jan 24 - U.S. firm sues Commerce Department to overturn 2017 Mexico sugar deal

A U.S. sugar company hurt by a 2017 U.S.-Mexico trade deal is seeking to invalidate the pact in the U.S. Court of International Trade, saying the government violated protocol and did not disclose all of its meetings with members of the domestic industry. CSC Sugar LLC, a Connecticut-based company that turns raw sugar into liquid sugar for use in ice cream and other treats, filed a complaint against the U.S. Department of Commerce in the Court of International Trade in New York, the company said on Wednesday. CSC alleges the department failed to disclose key conversations with members of industry for a year while it renegotiated a trade pact with Mexico over imports of the sweetener, invalidating the deal. Click here to read full stories.

Jan 24 - Ugandan firm uses blockchain to trace coffee from farms to stores

An Ugandan company has started using blockchain, the technology behind virtual currency Bitcoin, to certify shipments of coffee to try to meet growing demand from consumers for more information about where products have come from. Carico Café Connoisseur said the move could help to boost farmers' incomes, as consumers are usually prepared to pay more for goods that can been traced back to their origins. Click here to read full stories.

Jan 23 - Cocoa giant Barry Callebaut sees sales accelerating after Q1 miss

Barry Callebaut is counting on sales momentum to accelerate later this year, the Swiss chocolate-maker said on Wednesday, after a first-quarter where volumes rose just 1.7 percent, just short of expectations. Fiscal first-quarter sales volume rose to 541 million tonnes, the company said in a statement, compared to the average forecast of 547 million tonnes in a Reuters poll. Click here to read full stories.

Jan 22 - Ivory Coast rains revive hopes for a strong cocoa mid-crop

A mix of strong rains and sunny spells last week in most of Ivory Coast’s cocoa regions augurs well for the April-to-September mid-crop's development, farmers said on Monday. Ivory Coast, the world's top cocoa producer, is in the dry season that runs from November to late February. Healthy rainfall was a welcome development that farmers said would contribute to the growth of flowers and cherelles on trees. Click here to read full stories

Jan 22 - Sparkling Australian wine exports lose their fizz as Chinese economy slows

Australian wine shipments to China grew at their slowest pace in four years in 2018, industry data showed on Tuesday, in another indication that Sino-U.S. trade tensions were dragging on consumer spending in the world's second-largest economy. The slowdown in exports to less than a third of 2017's breakneck speed adds to worries for investors, already on edge amid signs that softening Chinese demand was hurting businesses across the board, particularly after Apple issued a rare revenue warning citing weaker iPhone sales in the country. Click here to read full stories

Jan 18 - Int'l Pepper Bulletin, Week 14-18 January 2019 (WPB)
- Market continued to show mixed response with significant movement only reported in some origins. On farm gate level, decrease in price was reported in India, Indonesia, Sri Lanka and Viet Nam while others were reported steady and China remained to have recorded an increase. With domestic of black pepper thinning, India market was dominated by the cheap smuggled products coming via borders of Nepal, Myanmar and Bangladesh (according to thehindubusinessline.com), thus making black pepper in India traded at an average of US$ 4,842 which was a decrease of 5% compared to last week. Sri Lanka and Viet Nam traded their black pepper at 1% lower as opposed to the previous week. Black pepper in Indonesia and Malaysia was traded steady just like the previous week. As for white pepper in farm gate level, Muntok and Viet Nam recorded a decrease of 2% and 1% respectively as opposed to the second week of January which could be contributed to the weakening of the local currency towards US dollar. Malaysian white pepper was traded on the same level as the previous week. This week saw China prevailed as compared to other origins with trading white pepper at 2% higher as opposed to the previous week in US$ 4,870.  
- Slightly similar with the farm gate price, FOB price for black pepper in India also recorded a decrease by 4% and was traded at an average of US$ 5,123. Whilst in other origins FOB price of black pepper were traded steady and experienced no movement. FOB price for white pepper in Muntok also reported to have decreased by 2% recording an average price of US$ 4,335 while in Malaysia and Viet Nam it remained steady. China again became the only origins to have recorded an increase on the FOB price for white pepper by recording an increase of 2% as opposed with the previous week.
- Market in the US was reported flat as U.S federal agencies have been shut down for three full weeks, which still continues till present date, due to budget disagreement. Due to of this shut down, though shipments were cleared by the Customs and Border Protection they were held by the FDA and USDA holds which weren’t being released in timely manners.

Jan 18 - Export of Pepper Oleoresin from INDIA (WPB):
- Pepper oleoresin is a concentrate obtained through the extraction process of black pepper using organic solvents such as acetone, ethanol, ethylene dichloride, ethyl acetate, and other organic solvents. Pepper oleoresin consists of a mixture of pepper oil, resin, and alkaloid compounds that play a role in the level of spiciness of oleoresin. As a pepper concentrate, one kilogram of oleoresin can replace the use of 10 kilograms of pepper as a flavor in the food processing industry. Oleoresin is used as a flavor in the food processing industry such as canning meat, sauce, making soft drinks, pharmaceutical raw materials, the cosmetics and perfume industry, sugar and bread industry, and other industries.
- The use of oleoresin is preferred for the food industry because it has the original taste and aroma. Other advantages, oleoresin is more efficient in transportation and storage, its use can be standardized, free from microbial contamination, long shelf life, and does not affect the appearance and volume of the product. Although it has many advantages, oleoresin comes in a very thick form so it is sticky and difficult to weigh properly. It is also difficult to be dispersed on dry mixing. The flavor stability is not good at long storage and solvent residue is still contained. Oleoresin flavoring characters can change during storage or processing which may cause off-flavor. Therefore, oleresin requires special handling during storage to avoid the effects of heat, light, oxygen and humidity. One of the many technologies developed to minimize oloresin weakness is the microencapsulation technology.
- As the top producers of pepper oleoresin, in 2016 India exported 1,116,698 Kg of oleoresin with a value of US$ 59.7 million. The export price of pepper oleoresin from India in 2016 was reported to be the highest in September which reached US$ 59 per Kg, while the lowest price was reported in February with a value of US$ 49 per Kg. The average export price of pepper oleoresin from India in 2016 was reported to be US$ 53 per Kg. In 2017, India exported 1,321,211 Kg of oleoresin with a value of US$ 64 million, recording an increase of 18% in quantity and 7% in value. The export price of pepper oleoresin from India in 2017 was reported to be highest in January at US$ 59 per Kg, and the lowest in December at US$ 41 per Kg, while the average export price of pepper oleoresin from India in 2017 was reported to reach US$ 49 per Kg. Based on these data, the average export price of pepper oleoresin from India in 2017 decreased 8% from the previous year.
- As of September 2018, India had exported 1,006,027 Kg pepper oleoresin with a value of US $ 41.7 million. Compared to the previous year in the same period, exports of pepper oleoresin from India in 2018 experienced a 6% increase in quantity but experienced an 18% decrease in value. The average export price of pepper oleoresin from India in 2018 (as of September) was reported to be highest in May at US$ 47 per Kg, the lowest in September at US$ 34 per Kg, and the average export price of pepper oleoresin from India for the first 9 months of 2018 was reported to at US$ 40 per Kg. Based on these data, the average export price of pepper oleoresin in this period recorded a decline of 25% and 18% as compared to the same period in 2016 and 2017.
- As of the 9th month of 2018, the 10 major countries to export pepper oleoresin from India are USA with a quantity of 276,979 Kg, followed by Germany (128,982 Kg), France (74,764 Kg), China (66,264 Kg), Netherlands (55,175 Kg), Thailand (48,941 Kg), United Kingdom (47,963 Kg), Philippines (36,935 Kg), Canada (34,411 Kg), and Russian Federation (31,147 Kg).

Jan 18 - Brazil forecasts smaller coffee crop in 2019, possibly supporting prices

Brazil's 2019 coffee crop is seen at between 50.48 million bags and 54.48 million bags, compared to 61.65 million bags produced in 2018, as the off-year in arabica's production cycle cuts overall output, the government agency Conab said on Thursday. Silvio Farnese, a supply director at Brazil's Agriculture Ministry, said the smaller crop could support prices, particularly for arabica futures in New York, since the cut in production for that variety is sizeable. Click here to read full stories.

Jan 18 - Brazil center-south sugar output to rise 14 pct - INTL FCStone

Brazil's center-south region will produce 30.2 million tonnes of sugar in the 2019/20 season, about 14 percent more than it did in the previous crop, broker and analyst INTL FCStone said in a report on Thursday. Mills will tend to increase the amount of cane earmarked for sugar production and cut ethanol production in the new crop starting in April, INTL FCStone said, as lower oil prices reduce the price advantage of ethanol compared with gasoline at pumps. Click here to read full stories.

Jan 18 - Small Ivorian cocoa exporters seek relief on commitments - sources

More small cocoa exporters in Ivory Coast were unable to fulfill their international contracts at the end of last year, and sources at the country's cocoa board told Reuters that this group asked to postpone 70 percent of October-to-December commitments due to a lack of financing. Each year, the cocoa board of top grower Ivory Coast (CCC) sells forward most of its expected harvest, a portion of which is allocated to small exporters. Click here to read full stories.

Jan 17 - Many coffee species threatened with extinction, scientists warn

Climate change and deforestation are putting more than half the world's wild coffee species at risk of extinction, including the popular commercial coffees Arabica and Robusta, scientists warned on Wednesday. Research published by experts at Britain's Royal Botanic Gardens at Kew found that current conservation measures for wild coffee species are not enough to protect their long-term future. Click here to read full stories.

Jan 17 - Brazil ethanol pipeline owner eyes corn-based fuel makers

Logum, the company operating Brazil's sole ethanol pipeline, is looking to expand the system into central Brazil to reach more plants and possibly the nascent corn-based ethanol industry, which is expected to grow. Chief Executive Wagner Biasoli told Reuters Logum has secured financing for an expansion to link new mills in the state of Minas Gerais, boost delivery to Sao Paulo state and reach total capacity of 6 billion liters per year. Click here to read full stories.

Jan 17 - ADM CEO says wrong time for 'monster' acquisitions

U.S. grain merchant Archer Daniels Midland Co (ADM) has looked at buying rivals including Bunge Ltd. and dozens of other companies but decided the time is not right for "monster" acquisitions, the company's chief executive told Reuters. ADM's overture to Bunge last year, reported by Reuters and other media, fueled Wall Street speculation of further consolidation among the world's major trading houses that sell, store and ship crops. Click here to read full stories.

 

Jan 11 - Weekly Pepper Bulletin, Week 7-11 January 2019 (WPB)
- Local prices in pepper-producing countries were reported to experience mixed responses this week. When comparing with the previous week, the prices of black pepper at the farm level were reported to have decreased by 3% in India, Viet Nam and 1% in Sri Lanka. Opposed to India, Viet Nam, and Sri Lanka, the price of black pepper at the farm level in Indonesia and Malaysia increased by 3% and 1% respectively. Price increases also occurred for Muntok White Pepper and Malaysia White Pepper, both products experienced price increases of 3% and 1% respectively as opposed to last week. The increase in pepper prices in dollar terms was due to the strengthening of the Indonesian and Malaysian local currencies against the US Dollar by 2% and 1% respectively. At farm level Viet Nam, white pepper was traded 5% lower than the previous week.
- In local currency, the average prices of black pepper this week were reported to be Rs 355 per Kg in India, IDR 33,000 per Kg in Indonesia, VND 50,100 per Kg in Viet Nam, RM 9.4 per Kg in Malaysia, and LKR 580 per Kg in Sri Lanka. While the prices of white pepper were reported to be IDR 53,000 per Kg in Indonesia, VND 83,500 per Kg in Viet Nam, RM 15.8 per Kg in Malaysia, and CNY 32.73 per Kg in China.
- FOB Prices for black pepper and white pepper also experienced a trend similar to pepper prices at the farm level. The FOB prices of black pepper and white pepper in Indonesia increased by 3%, and in Malaysia there was a 1% increase. Whereas India and Viet Nam experienced a decrease in FOB Prices between 1 - 3%.
- Furthermore, the Spot Prices of white pepper and black pepper in New York were reported to be stable, the same as last week. Following the brink of new crop arrival in Viet Nam and the full swing of Vitoria crop, pressure to the global pepper price is expected to continue. 

Jan 11 - Projection of Import and Domestic Consumption of Pepper
by INDIA, INDONESIA, MALAYSIA, SRI LANKA, VIET NAM, BRAZIL, AND CHINA IN 2019 (WPB)
- In 2019 pepper exports and consumption are projected to face a mixed response. India is projected to import 17,700 Mt consisting of 16,500 Mt black pepper and 1,200 Mt white pepper. Kerala flood damage in India appeard to be costly, pepper production in India this year is projected to be at 47,000 Mt which is 27% lower as opposed to the estimated production in 2018, India's exports are also projected to be quite high (17,000 Mt). So as to meet domestic consumption which is expected to reach 58,000 Mt (consisting of 56,500 Mt black pepper, and 1,500 Mt white pepper), India relies on imports, which is projected to be 51% higher as opposed to estimated figure of 2018, and stocks from the previous year which are already thinning.
- Indonesia in 2019 is projected to produce slighty 7% lower (65,000 Mt) when compared to the previous year. This year Indonesia is projected to import 850 Mt of pepper consisting of 700 Mt black pepper and 150 Mt white pepper. Peppers imported by Indonesia are  mostly processed pepper. Indonesia is known to export pepper to several countries such as Viet Nam and Singapore for further processing. After further proccessing the pepper was shipped back to Indonesia. To meet domestic consumption, Indonesia is projected to be able to fulfill it from domestic production. This year, domestic consumption in Indonesia is projected to reach 29,750 Mt consisting of 15,250 Mt black pepper and 14,500 Mt white pepper.
- With production projected to reach 24,000 Mt and export 14,000 Mt, then pepper stocks in Malaysia are still lacking to meet domestic consumption needs. In 2019 domestic consumption in Malaysia is projected to reach 11,150 Mt consisting of 6,690 Mt black pepper and 4,460 Mt white pepper. To meet domestic needs, Malaysia is projected to import 2,000 Mt of pepper consisting of 1,500 Mt black pepper and 500 Mt white pepper.
- Sri Lanka is projected to produce 26,700 Mt of pepper and export 20,200 Mt this year which would be an increase of 44% and 80% resepectively. Domestic consumption in Sri Lanka in 2019 is projected to reach 11,505 Mt consisting of 11,500 Mt black pepper and 5 Mt white pepper. For domestic consumption needs, Sri Lanka is still able to rely on pepper stocks from the previous year. Imports in 2019 will be carried out by Sri Lanka to maintain domestic stock stability. In addition to maintaining stock stability, Sri Lanka is also known to import pepper with the same purpose as Indonesia, namely the quality improvement of pepper carried out abroad. Imports by Sri Lanka are projected to reach 1,200 Mt, consisting of 1,000 Mt black pepper and 200 Mt white pepper.
- As a country with the largest pepper production in the world, Viet Nam is projected to continue importing 35,000 Mt of pepper consisting of 30,000 Mt black pepper and 5,000 Mt white pepper. Viet Nam is known to import pepper for further proccessing. Some producing countries such as Indonesia, Malaysia, and Cambodia are projected to export pepper to Viet Nam for further proccessing. In addition, the import to Viet Nam is also projected to be re-exported. Viet Nam imports high-quality pepper from several producing countries for the purpose of exporting it back to consumer countries. Furthermore, in 2019, domestic consumption in Viet Nam is projected to reach 9,000 Mt consisting of 8,000 Mt black pepper and 1,000 Mt white pepper. To meet domestic consumption needs, Viet Nam will rely on its production and stocks from the previous year.
- In 2019, Brazil is projected to only import 300 Mt black pepper. Brazil's projected production is 7% lower (67,000 Mt) than the previous year which is capable of meeting domestic consumption needs. This year Brazil's domestic consumption is projected to reach 7,000 Mt consisting of 6,700 Mt black pepper and 300 Mt white pepper.
- Although it is projected to have production of 33,000 Mt and export of only 1,000 Mt, in 2019 China still imports pepper to meet its domestic consumption. As the number one biggest population in the world, this year domestic consumption in China is projected to reach 75,000 Mt consisting of 40,000 Mt black pepper and 35,000 Mt white pepper. To meet domestic consumption, China cannot rely solely on domestic production and stocks from the previous year which would only amounted around 36,000 Mt. China is projected to import 40,000 Mt black pepper and 3,500 Mt white pepper so that the total pepper to be imported by China in 2019 is projected to reach 43,500 Mt.

Jan 08 - Building new specialty coffee benchmarks to secure better prices, supplies

Buyers and sellers of specialty coffee, increasingly worried about future supplies of high quality beans, are finding new ways to price their coffee after benchmark U.S. futures hit a 13-year-low in late 2018. Specialty coffees are usually priced at a premium to the benchmark, leaving specialty growers vulnerable to volatility in futures. Click here to read full stories.

Jan 07 - China to launch rubber, cotton and corn options on Jan 28

China will launch options for rubber, cotton and corn on Jan. 28, the country's securities regulator said at a press briefing on Friday, adding to the tools available to hedge on price risks in the world's largest agriculture market. The regulator approved the launch of corn and cotton options in June last year. Click here to read full stories.

Jan 04 - Weekly Pepper Bulletin, Week 31 Dec 2018 - 4 Jan 2019 (WPBP)
The end of 2018 and start of 2019 were marked with mixed response from the market. Pepper prices showed increasing trend in all producing-countries except in Viet Nam and Sri Lanka. At the farm level, the prices of black pepper and white pepper in India, Indonesia, and Malaysia experienced a sligh 1% increase compared to the previous week. The price increase was influenced by the local currency which strengthens against the US Dollar. In Viet Nam, the price of black pepper was recorded to have declined by 2%, and white pepper also declined but was not significant. A significant decline occurred in the price of black pepper in Sri Lanka. The price of black pepper in Sri Lanka declined by 6% compared to last week. A factor in domestic political instability was the contributing factor behind the decline in pepper prices in Sri Lanka.
The average prices of black pepper at farm level this week were reported to be IDR 33,000 per kg in Indonesia, VND 51,500 per kg in Viet Nam, RS 366 per kg in India, RM 9.4 in Malaysia, and LKR 589 per kg in Sri Lanka. Furthermore, the average prices of white pepper at the farm level were reported to be IDR 53,000 per kg in Indonesia, VND 87,500 per kg in Viet Nam, and RM 15.8 per kg in Malaysia.
FOB prices in producer countries also experienced a trend similar to prices at the local level. Price increases occurred in India, Indonesia and Malaysia. Nearing the new crop season in Viet Nam which added further pressure, the FOB prices of black pepper and white pepper in Viet Nam were recorded to have decreased by 2% and 1% respectively. Furthermore, spot prices in New York this week were reported stable, there were no changes compared to the previous week.

Jan 04 - Projection of Production and Export of Pepper by INDIA, INDONESIA, MALAYSIA, SRI LANKA, VIET NAM, BRAZIL, AND CHINA IN 2019 (WPB)
In 2019, Vietnam's pepper production is projected to remain the highest compared to other pepper-producing countries. Viet Nam is projected to produce 175,000 MT of black pepper and 25,000 MT of white pepper, so the total production of Viet Nam is projected to reach 200,000 MT. Compared to the previous year's estimate, Viet Nam's production is expected to decline slightly which could be contributed to the fact that Viet Nam isn’t looking to expand its pepper cultivation area, according graovenment officials. This year Viet Nam will focus on improving the quality of pepper rather than the quantity of production. Viet Nam will focus on reducing the use of synthetic chemical pesticides, and try to develop organic pepper plantations.
Brazil is projected to become the second largest pepper-producing country after Viet Nam. In 2019, Brazil is expected to produce 64,000 MT black pepper and 3,000 MT white pepper, so that Brazil's total production in 2019 is projected to reach 67,000 MT. Similar to Viet Nam, Brazil's production is also expected to decline compared to the previous year's estimate. The decline is estimated because some pepper gardens in Brazil have been quite old plants, and some gardens with young plants still need more time to produce.
Indonesia is projected to occupy the third position after Viet Nam and Brazil in pepper production. In 2019, Indonesia is projected to produce 25,000 MT of black pepper and 40,000 MT of white pepper. Compared to the previous year's estimate, Indonesia's production in 2019 is also projected to decline. The decline in production is due to the fact that many gardens in the pepper production center are not in good condition due to lack of care. Farmers are a little less eager in maintaing their pepper farm because prices have continued to decline since the pastt few years.
Pepper production in India this year is expected to decline compared to the previous year's estimate. In 2019, India is projected to produce 45,500 MT of black pepper and 1,500 MT of white pepper. The decline in production in India is caused by the many gardens in the center of pepper production such as in Kerala  were damaged due to floods. Floods in Kerala cause many plants to be washed away and caused a less favorable microclimate. Humid conditions after flooding triggered the emergence of various diseases in pepper plants.
Production of black pepper in China is estimated to reach 33,000 MT consisting of 1,000 MT of black pepper and 32,000 MT of white pepper. Thus records a decrease of 6% in the yearly total production as compared to the previous year.
In 2019, black pepper production in Sri Lanka will reach 26,000 MT and white pepper production is estimated to reach 700 MT, so total production this year is projected to reach 26,700 MT which records an increase of 44% opposed to the estimation number for 2018.
Pepper production in Malaysia is expected to increase from the previous year. In 2019, Malaysia is projected to produce 17,872 MT of black pepper and 6,128 MT of white pepper, so that total pepper production in Malaysia is estimated at 24,000 MT. A number of pepper production centers in Malaysia are heading to peak production so production in Malaysia has increased slightly this year.
Exports of pepper in 2019 will also be led by Viet Nam with export projections reaching 215,000 MT. Exports by Viet Nam are projected to be greater than their production because Viet Nam has quite significant stock carry forwad from the previous year. Export quantity after Viet Nam was followed by Brazil (57,600 MT), Indonesia (37,000 MT), Sri Lanka (20,200 MT), India (17,000 MT), Malaysia (14,000 MT), and China (1,000 MT).

Jan 04 - Scant rain poised to stress Brazil sugarcane as well as soy

Erratic rains in Brazil, which have already been hurting the soybean crop, are also beginning to stress sugarcane fields, which this season are more susceptible due to plant aging, experts told Reuters. Sugarcane is usually more resilient than soybeans amid weather adversity; still, below-average rains and high temperatures are cause for concern in the industry, which faces potential losses if such conditions persist, they said. Click here to read full stories.

Jan 02 - Cocoa tops 2018 gainers, as growth worries roil metals, crude 

Cocoa prices ended 2018 with strong gains, leading generally firmer agricultural markets, but the year marked falls for most major commodities as increasing global economic uncertainty hit metals and oil. Worries about slackening growth in China, the world's second-largest economy, and trade talks between Washington and Beijing will be the main focus in the new year, analysts said, while oil markets fear a growing oversupply.Click here to read full stories.

 

Jan 02 - Sugar prices end 2018 at lowest levels in a decade 

Sugar futures on ICE finished 2018 lower on Monday, with year-end settles for New York-based raw sugar and London-based white sugar at the lowest since 2008, as a global supply glut led to a second consecutive annual decline. Spot raw sugar closed at 12.03 cts/lb, a 20.6 percent decline year on year, while spot white sugar ended the year at $332.50/tonne, a 15.8 percent decline year on year.Click here to read full stories.

WPB Week #29/18, 16 - 20 July 2018 

Pepper price at most origins remained unchanged. A marginal increase took place in HCM City for black pepper traded at local market. In Sarawak however the price decreased marginally.

 

Trade source reported Vietnamese black was offered at $2,650 for 550 FAQ and $2,700 for 550 MC. White pepper HTST was offered at $4,290. All are in US$ per Mt for Aug shipment.

 

Lampung black ASTA HTST was offered at $3,100 and for Brazilian ASTA was $2,650 per MT.

 

In Bangka, pepper harvest is on-going. Due to erratic rains taken place during this crop season, fruit growth is not uniform and the harvest will take longer. Pepper harvested in the main crop season (July/August) is not as good as last year. Overall however, the output is estimated to be more or less same as last year, with a marginal increase is anticipated.

 

EXPORT OF PEPPER FROM MALAYSIA: 

In 2017 Malaysia exported 12,190 Mt, a marginal decrease of 3% from 12,550 Mt of export in 2016. Supported by sufficient stocks carried forward from 2017, export of pepper in 2018 is estimated to increase. Indication of the increase is shown by increased export in the first four months this year. In April 2018 Malaysia exported 818 Mt of pepper, an increase of 12% when compared to export in April 2017. During January-April 2018 export of pepper from Malaysia reached 3,685 Mt, recording an increase of 3% when compared to export in the same period last year. Japan and China were the main markets of pepper for Malaysia, absorbing 33% and 28% respectively of Malaysian pepper in the four months. Singapore and Taiwan also imported significant quantity of Malaysian pepper.