Clove prices remain locked in a period of stagnation as sluggish demand and a persistent lack of fresh buying interest continue to hold the market in check. Over the past week, benchmark clove prices have stayed steady at $9.22 per quintal, with only a marginal dip of $0.12 per quintal reported earlier in the week. This mild decline, though not drastic, underscores the current challenges facing the clove market: subdued export activity, shy domestic consumption, and a stronger U.S. dollar weighing on international competitiveness.
Market sentiment is notably cautious, with traders and analysts predicting little movement unless either new export orders materialize or there’s a genuine boost in local demand. So far, neither scenario has emerged, leaving many participants on the sidelines. The lack of volatility in pricing reflects a broader unease that continues to cloud the spice market in 2024, with cloves serving as a prime example of how weak fundamentals can flatten the trade for extended periods. In this context, only a significant change in weather conditions for major producing regions, or a shift in monetary policy affecting currency rates, could provide the necessary spark for a price rally in the coming weeks.
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Cloves
whole
FOB 9.50 €/kg
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Cloves
ground
FOB 9.60 €/kg
(from IN)
📈 Prices
| Product | Type | Origin | Delivery Terms | Location | Current Price (EUR/kg) | Previous Price (EUR/kg) | Update Date | Market Sentiment |
|---|---|---|---|---|---|---|---|---|
| Cloves | Whole | India | FOB | New Delhi | 9.5 | 9.5 | 2025-09-12 | Steady / Bearish |
| Cloves | Ground | India | FOB | New Delhi | 9.6 | 9.6 | 2025-09-12 | Steady / Bearish |
| Cloves (Benchmark) | – | – | – | – | $9.22 (USD/quintal) | $9.34 | Current Week | Flat / Weak demand |
🌍 Supply & Demand
- Demand: Remains subdued due to minimal export and lukewarm domestic interest. No significant demand from major buying regions has been recorded in recent weeks.
- Supply: Stable, with India and Indonesia maintaining average output. No known disruption in supply chain, leading to balanced (but oversupplied) market conditions.
- Import/Export Trends: Weakness in export orders persists. Key importing countries have not ramped up purchases, and inventories remain ample in destination markets.
- Currency Impact: The strengthened USD further erodes the competitiveness of clove exports from non-dollar markets.
📊 Fundamentals
- Speculative Positioning: Limited speculative activity, with most traders adopting a wait-and-see approach due to flat price action.
- Key Market Drivers: Persistent weak demand, absence of new tenders, an appreciating USD, and no major supply interruptions.
- Historical Comparison: Compared to last season, cloves traded at similar levels, but with slightly more volatility due to stronger festival and industrial demand in 2023.
🌦️ Weather Outlook
- India (Kerala, Tamil Nadu): Favorable monsoon rains in recent weeks, ensuring healthy soil moisture. Prospects remain good for normal yields unless late monsoon withdrawal triggers disease pressure.
- Indonesia (Maluku, Sulawesi): No adverse weather reported; stable output is expected for the coming harvest season.
- Overall, weather is not currently a bullish or bearish factor for this market.
🌏 Global Stocks & Production
| Country | Expected 2024 Output (tonnes) | Major Exporters | Major Importers |
|---|---|---|---|
| Indonesia | ~80,000 | Yes | No |
| India | ~10,000 | Yes | No |
| Madagascar | ~15,000 | Yes | No |
| EU, USA, Middle East | N/A | No | Yes |
📆 Trading Outlook & Forecast
- Prices likely to stay in the current range, with short-term rallies unlikely unless new export orders surface.
- Subdued buying and a lack of speculative interest will keep liquidity thin.
- Weather, for now, is not a market mover; monitor for any late-season risks.
- Focus attention on currency movements, particularly USD strength which may pressure exporters.
- Buyers are advised to wait for either a supply disruption or signs of improving demand before entering the market in size.
- For sellers: consider locking in forward sales on any price uptick, as medium-term fundamentals remain bearish.
🔮 3-Day Regional Price Forecast (Key Exchanges)
| Exchange / Market | Product | Current Price | 3-Day Forecast |
|---|---|---|---|
| New Delhi (IN) | Whole (organic, FOB) | €9.50/kg | €9.45 – €9.55/kg (Stable) |
| New Delhi (IN) | Ground (organic, FOB) | €9.60/kg | €9.55 – €9.65/kg (Stable) |
| International Benchmark | Whole Clove | $9.22/quintal | $9.15 – $9.25/quintal (Flat) |
