Cloves Price Surge: Market Dynamics and Future Predictions
The international cloves market is witnessing a significant price surge as supply constraints in key producing countries have led to scarcity and rising demand. Madagascar, a major player in the global cloves trade, has experienced a substantial reduction of about 40 percent in its clove production. At the same time, Komran Zanzibar's crop is nearing completion, exacerbating the supply shortage.
The recent arrival of the clove crop in Madagascar has led to a price gain of $0,73/0,85 per kg this week. However, the absence of new goods from the region has raised concerns among traders, hinting at a potential $1,22 per kg price increase.
The scarcity of clove goods in the market has led to the disposal of old stock, but public sales remain weak even at reduced prices. As a result, the market is facing a recession, with prices declining to $ 12,4 per kg.
Market sentiment is being influenced by the considerable price surge, and analysts anticipate limited spot sales in the coming days. As supply constraints persist, market participants are advised to exercise caution and closely monitor the situation.
The global cloves industry is closely observing the developments, and further price fluctuations are anticipated in response to the ongoing supply challenges. The outcome of this market situation will play a crucial role in shaping the future of the cloves trade worldwide.
The recent arrival of the clove crop in Madagascar has led to a price gain of $0,73/0,85 per kg this week. However, the absence of new goods from the region has raised concerns among traders, hinting at a potential $1,22 per kg price increase.
Sharp increase in price
The decrease in Madagascar's clove production is attributed to deliberate farming reductions by producers over the past few years. As importers grapple with the limited availability of new goods, the cost of cloves has surged from $9^,800 to $10,500 per tonne. This sharp price increase is affecting businesses and traders, prompting profit booking and selling pressure.The scarcity of clove goods in the market has led to the disposal of old stock, but public sales remain weak even at reduced prices. As a result, the market is facing a recession, with prices declining to $ 12,4 per kg.
Market sentiment is being influenced by the considerable price surge, and analysts anticipate limited spot sales in the coming days. As supply constraints persist, market participants are advised to exercise caution and closely monitor the situation.
The global cloves industry is closely observing the developments, and further price fluctuations are anticipated in response to the ongoing supply challenges. The outcome of this market situation will play a crucial role in shaping the future of the cloves trade worldwide.