PEPPER MARKET REPORT
A few important comments are in order regarding Black and White Pepper. Market prices have soared during the past few weeks. All origins have moved much higher during the past three months and Malabar (India) Pepper is trading at more than $1.50 per pound above other origins. Production from Vietnam’s February crop is drawing to a close and producers there are reporting very low inventories. There is a new Lampong (Indonesia) crop due out in the next few weeks but the crop is said to be smaller than last year and it is unlikely that a significant, if any, market correction will occur. White Pepper has followed Black Pepper’s track upward to higher levels.
Spice traders, dealers and producers worldwide remain very bullish about future Pepper prices. Although a market correction may occur, it is doubtful that we will see a return to low Pepper prices anytime soon. We expect market prices to remain very high at least for the next six to eight months. We have all become accustomed to paying more than $4 per gallon of gasoline even though a short few years ago we were paying half of the current prices at the pump. Just as a return to $2 per gallon of gasoline is unlikely, a return to low Pepper prices would be also be quite a surprise, albeit a pleasant one. We have increased our Pepper prices on our new price list. If the market continues to rise, there will be another increase coming your way in a short time. We urge you to cover your requirements for Pepper for at least the next three months. Six month coverage is perhaps even more prudent.
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