Culpepers' Market report

November 2018

Disclaimer   This report is intended for general information only and not solely relied upon for investment and or menu planning decisions. Please contact your supplier for more specific information.
The products reported are commodity items and are traded internationally. Pricing and supply of these products are affected by many factors which include the following.

  • Size of the crop. Especially the amount being planted.
  • World and local demand. Australian consumers have to pay the world price for local stock!
  • Changes in currency exchange rates.
  • Grower expectations. Growers can change crops if they believe they will earn a greater profit by switching crops.
  • Increases in the costs of production, importing and the general cost of doing business.
  • Changes in Government regulations, taxes and charges.
  • An increase in the amount of misinformation within market reports from growers and traders, designed to keep price high.
  • Shipping disruptions, strikes and industrial disputes!

and of course....

  • "Rain, too much, too little or none at all!".

The market is stable with higher than expected crop sizes and consistent demand matching available volumes. US Tariffs have the potential to affect Chinese demand for US crops. The news on the size of the Australian crop is positive. The impact on strained relationship between China and the USA is yet to be felt.

Pricing is stable and exports from Turkey have been for larger than average fruit. There is some concern over the strength of the Turkish Lira against other currencies.

Banana Chips
Prices are rising as the low rainfall conditions have failed to produce a decent crop. This is a popular product in China and demand has been increasing.

Bay leaves
Production costs are affecting the market price. Forrest fires will affect availability.

Beans and Peas - Dried
Many growers are forecasting lower yields on all crops due to reduced planting. Growers do this to improve the profitability per hectare by creating a shortage despite increased demand.

Brazil Nuts
Only small volumes are being offered. Pricing is increasing significantly.

The cashew market is showing slight signs of weakness as processors in Africa are adding significant volumes to the world crop. Vietnamese processors are struggling to get business finance due to lower than expect profit results. Government protection on emerging supply markets is distorting true crop values. Packers are being cautious.

Cassia has been a popular substitute for Cinnamon but as stock is limited as the Indonesians move away from planting. The price is increasing. Vietnamese growers have lifted pricing to match demand.

Chili Pepper
Market is all over the place! In some growing regions, banks are not lending to growers forcing them to turn reserve stock into cash. These are being placed into long term cold storage to sell when the price recovers.

Volumes are steady and price is increasing as demand for true cinnamon returns.

New crop should lower prices depending on the crop size. If the crop is lower than forecast then the price may result in a price increase.

Prices are variable. Low profit returns for processors mean that packers are holding onto materials until selling prices improve. There is a reduced demand for coconut oil contributing to an over supply of raw material. However, recent storms may trigger price rises as potential for inflated reports of crop damage are circulated to create buying momentum.

Coriander Seeds
Pricing is decreasing slightly due to new crop increasing the availability. Pricing predicted to be mostly stable.

Good crop sizes but demand has maintained selling prices.

Pricing and availability is stable.

There is less supply of new crop but pricing is steady due to the release of old stock from Cold Storage.

Price is stable as there is sufficient supply. Growers are not increasing planting because the return is too low.

Turkish Figs growers have reported good crops. The average quality isn't as good so there is an disproportionate amount of figs for manufacture and smaller volumes available for snacking.

Garlic Granules and powder
The news from China is that prices have returned to realistic asking prices. The crop size if very high compared to previous growing seasons.
In the USA the crop is a good size and quality. Processors are pushing for premium pricing as they quality is high and their costs of production have increased.

This year’s crop is about half the previous year’s crop size due to decreased plantings. This will result in increased prices. This will be partially offset by the Nigerian Ginger crop.

Interest has fallen and growers are just matching demand with last seasons crop. Government intervention has seen a minimum price set for Hazelnut exported from Turkey.

Generally interest in Linseed is finally increasing. Canadian crops produced poor yields and pricing remains stable.. USA and European crops are better than previous years. Farmers locally are optimistic about demand and pricing competitiveness. China has taken a significant interest in linseed and this will keep prices firm.

The Australia crop has been harvested with good volumes of high grade material being processed. Global demand continues to be high despite higher than normal pricing being asked for. China is planting macadamia trees and are learning how to produce a quality crop. This will ease the demand for Australian crops in the long term.

Supply and pricing is stable.

Supply is steady and pricing is steady.

The East coast of Australia growing regions for oats has been affected by poor rainfalls. WA has a good crop and will need to supplement Eastern states requirements resulting in higher local pricing.

In the USA the Onion prices are stable despite processors having increased operating costs. Demand for USA stock is steady due to the high quality and reliability of the product. In China they have increased the crop sizes and these have benefited from good rains and general water availability.

A slight increasing in prices on the US crop. Product from Spain is consistent and good quality. EU pricing is stable.

Argentina has reduced its plantings due to decrease demand forecasts but Brazil growers are increasing plantings. However, it'll be the level of rainfall that determines the end result.

USA processors are being hampered by heavy rains and the crop harvesting is later than normal. Tariffs against trade with China are confusing the prices and we are yet to see what the impact will be. Local and European demand has increased compensating for the fall in demand from China.

An over supply of product has seen many farmers shift crop away from Pepitas and this may create a shortage in the the long run. Overall demand is down as buyers have switched to other seeds, so it will be interesting to see if pricing firms given the fewer plantings.

Continues to be unstable. Some good spot buys as grows liquidate stock for cash. Demand continues grow beyond production.
The world pepper supply has had a boost with the Vietnamese crop being harvested. Pepper mostly comes from India, Indonesia, Brazil and Vietnam. Despite Vietnamese crops increasing in volume the increase has been offset by a decrease from India as in Indian pepper consumption has increased. Pricing is continuing to climb as some Indian processors holding back stocks.
Some suppliers are selling cut pepper ground products. Rice flour or tapioca is used to reduce the kilo cost average. Culpepers' offer 100% product.

Pine Kernels

Most pine kernels come from China, Siberia and Mongolia. Siberia and Mongolia cater for the Russian markets leaving China to supply the world. Demand is increasing and pricing is expected to increase also.

Dried pineapple crops are delayed due to a late start to the expected high rainfall. Pricing is increasing.

The USA crops size is larger than normal and the quality is good. Global demand is strong.

Poppy Seeds
Pricing, supply and demand is still reduced.

Potato Flake
The USA new crops are being harvested and the crop size remains positive. In Europe, however the quantity and quality is below previous years with growers experiencing lower yields and significant cost increases. Poor quality potatoes are being diverted for starch production adding to the shortage.

Crops in the USA and Chile have both experience good growing conditions and both have produced a good crop. Increase in demand has kept pricing firm.

Some shortages forecasted and prices could climb by as much as 30%

Crop yields are down due to crop damage from heavy rains and grass infestation. Prices are firm.

Sesame seeds
Good growing conditions in Africa and India have recorded bumper crops. However some India growers are shifting to more profitable crops. Chinese growers have experienced some flooding in growing regions reducing the Chinese crop. These shortages are being off-set by high volumes out of Africa. The market is firming as buyers re enter the market.

Prices are rising and demand has been consistent. Processors are clearing carryover stock and so exports are up despite replacement stock being down. Collective bargaining by growers is seeing an upward influence on the farm gate price. USA prices are higher than normal allowing for Turkish and Iranian processors to move prices upward.

Pricing is stable. The main buyers are Chinese and they have reduced purchases. The drought in growing regions has reduced supply so the net result is a stable price.

Tomato - Sun-dried
Planting have increased as grower seek to satisfy increased demand. Crop quality is very good and has produced a better than average crop size.

Pricing remains steady as supply meets demand. New seasons crop is looking favourable.
Often producers will switch crops to either rest the soil or achieve a higher profit per hectare yield with a crop that they believe will generate a better income.

Overall availability looks short. New seasons crop is available from September.

Vanilla Pods World demand has increase so significantly that pricing has double in recent months. There is no sign of relief as growers withhold stocks to further excite demand. To early to tell where this will settle.

USA Packers are producing below normal crop sizes so pricing is firming as buyers secure requirments.




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