Olam SVI’s experts regularly publish supply chain forecasts and critical market intelligence to help its customers.
The Olam SVI Spices MarketReport is published from one to two times a month as market conditions surface and actionable data is available, and offers an exclusive analysis of the global production and market situation.
Chili
Chili prices have experienced extended weakness across varieties upon increased arrivals. Low quality arrivals and surplus cold storage stock further dampened the price sentiments.
Chili harvesting is approaching conclusion with between 15 to 20% of the crop remaining in the fields. Approximately 135000 MT of new crop has arrived at cold storages in Guntur in addition to old crop of 17000 MT.
Chili markets will be closed for summer vacation from 2nd week of May to 12th of June, 2017.
Near-Term View
Considering the current stock position across locations and huge arrivals in the market, prices are not expected to increase much in the near term future.
Price-Driving Factors To Be Watched:
- Demand from both Domestic and Export markets
- Balance crop from AP/Telangana/Karnataka
- Government support for chili farmers
- Expected SW monsoon
Turmeric
Prices continue to be slightly bearish during the beginning of April, further getting steady for the last 10 days across major markets in Nizamabad and Sang Ii. Tamil Nadu markets in last 10 days recorded a slightly downward price correction against steady arrivals. AFT and other high CC varieties are still trading at par with last year price levels due to better demand against limited arrivals at origins.
Near Term View
Stock release trend in May-June will be crucial and is dependent on pre-monsoon showers possible May-June. It is advisable to cover the near term requirements at the current price levels.
Cumin
Cumin quality compared to last year was reported to be superior due to favorable weather conditions in Gujarat and Rajasthan. Stockists are likely to keep away from the market due to higher prices and thus there will be likely be demand for Cumin throughout the year.
Near-Term View
- Prices are likely to remain stable at current levels.
- It is possible a dip in arrivals may take up prices further up. Spot market will remain firm due to continuous demand from Domestic and Export markets.
Coriander
Despite heavy arrivals, Coriander prices jacked up across markets in first fortnight of April due to support from NCDEX futures. However, the markets crashed on reverse trend in futures in the second half. Stockists covered the material in the month of March 2017 when the prices were expected to be at the bottom of the season.
Near-Term View
Domestic players have started buying and the prices may remain range bound. Seasonal arrival pressure is likely to keep the prices in control for near term.
Black Pepper
Arrivals are in full-swing in Karnataka and low in Kerala. Indian Black Pepper prices corrected down approximately 10% in last 8-10 days on sluggish domestic buying interest. Rumors on arrivals of Vietnam Black Pepper through Nepal to India pulled back the domestic buying sentiments resulting in a wait-and-watch approach.
Near/Medium-Term View
Indian Black pepper price levels are likely to be range bound for near term. Monsoon factor as well as Vietnam stock release pattern and government policies in next 3-Li months will be crucial for Indian Black Pepper price levels—likely to be the decisive factor for medium to long term price trends.
About Olam SVI
With a physical presence in all key global origins, multiple manufacturing facilities, over 50 years of proprietary seed development and culinary applications expertise, one out of three organized users of dried onion and garlic in developed markets relies on Olam SVI for its products and services.
