I think this year we will see an over production of pepper with 3-4 competing countries. Vietnam will be the losing country because of the pesticides residue issues. Lampong and Brasil contain less and sri Lanka, India and Madagascar are not having pesticide issues.
In the current market I don’t see western Europe or USA buying big positions ahead because they are all waiting for corrections. We have seen that even if demand is 10.000 mt more than now they can still ship the goods so production capacity is 2 time more than market is asking for.
My estimation is that Indonesia will produce at least 20.000 mt white and 30-35.000 mt black.”