The crop has officially started on the 25/10/14 and the news are not good. The local market is increasing everyday. Previous weeks, some big local players were building stocks, and it seems that farmers and collectors are making retention now.
Moreover the shippers who have stocks from the previous crop, have cost prices more or less the same than last year.
So, their strategy is to buy at higher prices for the following reasons
· Prevent other shippers to buy or to sell with good margin
· Average their stock value with potential lucrative profits
They are convinced that they will become the kings of the clove world – they are waiting for Indonesian and Indian buyers…
The consequence is the export market is relatively quiet, because most of the buyers were expecting better prices with the Malagasy crop.
Since early October, we got few inquiries from small Indians traders. The US buyers seem to wait for the Brazilian cloves. The Europeans were waiting for the Malagasy offers but they find prices too high, even if stocks are low.
the problem is ; there is too much money in the bush (non official business money to be cleaned) and everybody knows that will be difficult to push down the price of this crop.