20.MAY.2020

“Market Report”

Syrian Spice Market and the lockdown eases parallel with the new harvest season:

Special : Syrian government has lifted the lockdown, and we came back to work normally, the affection of the lockdown was minimal because it’s the end of the season, but we hope that we will not have to face a second phase of the pandemic, during harvesting season, luckily we were able to ship some the cargo during the lockdown, and process materials, to satisfy our clients, when they are in urgent needs for cargo,

In this time of global crisis, we have to be together to face the affection of the pandemic on the all chain supplies, to protect ourselves from possible supply chain eruption,

We hope that everyone stays healthy and safe.

Re. Cumin seeds:

New crop development: (As everyone is asking about the new crop, so I preferred to put it into the beginning of the report)

Planted areas of cumin this year are less than last year, as one third of the areas hasn’t been planted due to the war condition over there, but the development of the crop was Good in planted areas, so we are hoping the yield to be better than last year, weather was good till recently changed to unfavorable last week where we have seen showers, which effected the color of cumin, in some parts of planted areas, but it’s not that to worry about it is only to consider it, yet there is another cold front coming next week, that which are watching closely, as it’s coming with showers in very critical time, as most of farmers are in holiday, and they didn’t harvest their crop till After Eid, which will be on 23rd May , if that went well, we are expecting average to less crop than last year, 

Market status: the market eased from the highs of April, as we are approaching the harvest season, and carry over this year, is lower than usual, because of many shipment done after the lockdown of India.

For offers versus demands for new crop has started locally from local speculators and people running from big inflation happening in Syria because of the fast devaluation of the currency, which we are expecting to increase after Eid, as last year they made a good money when prices went up 5-600 $/T , local offers are still minimal as the harvested quantity still limited, but obviously it’s expected to increase substantially after Eid,

We still have the eruption already exist of electricity, and shortage of fuel needed for generators, so processing of harvesting, dressing, and others supply chain points will be in slow pace.

Price trend: is not clear yet, as the market of old crop closed at high price, and harvest is minimal, and many developments are happening, weather, inflation, harvesting, and other factors, we need to wait more ten days to see the real prices,   

Internationally :

Indian cumin is sideway, at lower prices, and the lockdown eased in some places and extended in other places, , and china came back to act, which gives some positive sentiment over there,  

Turkish cumin price is stoned at high level, and new crop will be end of June, new crop looks like less than last year crop, of the losses they made out of the rain came last crop at the harvesting time,  but we will be waiting the news of their new crop.

Business environment :

Movement came back to normal, as the government lifted the ban on movement , luckily war is less intensive, because of the calling for seize fire against Covid 19,  and government export regulations are with no change, and Syrian pound now is decreasing heavily with bearish tone, petrol shortage is there, which reflected in increase in transportation cost, beside production cost, higher cost for cleaning sorting and packing, in addition the cost of insurance on the cargo is increased, all ports are working fine, but expected to be slower .

Re. Anise seeds :

Market status : Market eased a little bit after the sharp increase in Feb, and went stable since then, carry over is there but of not the good quality,

For offers versus demands Demand is low there, as everyone waiting the new crop, while offers of good quality are difficult to find, carry over is getting smaller, and some negative news about the new crop, let the people hold strongly the carry over of good quality.

Prices of good quality are n’t clear, as few quantities are left, while price of low quality are at a considerable discount, with consideration of the currency devaluation, the price may to have more easiness.

For medium term, the market looks sideway, as cargo is really less, we are watching the new crop developments, which so far not as good as hoped, for the demand, we don’t see a considerable demand since the pandemic began, and we are watching how is the market will continue after harvesting.

Turkish Anise crop quantity is smaller, and prices are  still in the high side,

Spanish Anise price stays firm, as last crop was smaller, price is higher,

The planted areas are less than last year because of many areas got heavy rain at early developing time of the plant, therefor many farmers switched their plantation to other crops, and so far the news of Anise crop isn’t bright, anyway, we are watching closely the situation, we hope that we will have a good season this year, harvest will start mid of June, and it will be ready for shipment first half of July. 

Re. Coriander seeds:

Market is stable at low prices, with slow activity,

Demands are there for export, but in slower pace, from Arabic countries, beside some to far east,

Price stable at attractive levels, as the Eastern European coriander is lower,  the quantities which were hold in a strong hands, now they are releasing it, as the price behavior didn’t go as they wanted, so now the cargo is found at good level, if the quality is approved.

International market is stable, and prices from India are stable, while there was only 60-70% crop this year of last year crop, which was also smaller, carry over was still there, but offers of Russian and Ukrainian corianders are effecting the market down.

Re. Nigella seeds  :

Market eased after the sharp increase happened last month, because of lockdown in India and the demand for Arabic countries before Ramadan, demands are there, but left quantities of the crop are small,

still Syrian price is more attractive than other origins, and local speculators have a strong appetite for this product, as they made money last year as prices went up a staggering 80%,

Price expected to stay at the same level, for the medium term,

New crop :

The planted areas are less than last year, farmers wanted to grow more profitable crops with higher income, as higher prices happened after cultivating season, so farmers missed the opportunity to seed nigella, and we are watching the developing of the planted areas next crop will be within two weeks, and it looks doing well.

Re. Caraway :

Market is stable at low level, demand is a small . but also left quantities are limited too, new crop of Caraway is next week to be harvested.