Clove Market in Focus: Firm Prices Amid Tight Supply & Steady Demand

The global clove market is currently characterized by a notable turnaround in price action, having rebounded from a period of earlier softness to now stand at stable yet elevated levels. As reported, cloves are trading around USD 10.00 per kg, demonstrating a clear increase from previous weeks. This price strength is rooted in a convergence of fundamental market factors rather than speculative movements.

Strong domestic demand, particularly in major consuming and processing regions, continues to support higher prices. Compounding this is the impact of currency pressure, which has raised import costs for international buyers. Perhaps most critically, major producing nations—namely Indonesia and Madagascar—are experiencing lower stock levels. This scarcity has compounded the firm pricing environment by limiting available volumes for export and raising concerns around future availability.

Given these intertwined dynamics, market participants remain vigilant. The consensus among traders is for a continuation of this firm price regime for the foreseeable future, with downside risks notably capped as long as import costs and supply constraints persist. For stakeholders across the clove value chain, the immediate to near-term market outlook appears robust, with minimal signals pointing to a significant correction in prices.

📈 Prices & Exchange Overview

Product	Origin	Location	Type	Last Price (EUR/kg)	Last Price (USD/kg)	Previous Price (EUR/kg)	Update Date	Market Sentiment
Cloves	India	New Delhi	Whole, Organic, FOB	9.60	10.00*	9.65	2026-02-21	Stable/Firm
Cloves	India	New Delhi	Ground, Organic, FOB	9.70	10.10*	9.75	2026-02-21	Stable/Firm

*USD prices are approximate, reflecting prevailing exchange rates and international market references.

🌍 Supply & Demand Drivers

• Domestic Demand: Remains robust, providing a solid floor for pricing.
• Import Costs: Elevated due to currency headwinds, particularly impacting buyers from regions with weaker currencies.
• Stock Availability: Restricted in principal producing states (Indonesia, Madagascar), intensifying competition for remaining stocks.
• International Trade: Reduced export allocations due to lower inventories, amplifying price support.

📊 Fundamental Data

• Stock Situation: Indonesia & Madagascar stocks at multi-season lows; risk of tighter supplies continuing into next quarter.
• Demand Profile: No signs of weakening in food processing and spice-blending hubs; Indian organic segment referenced as stable and well-bid.
• Speculative Activity: Limited; price strength traced directly to physical fundamentals.

🌦️ Weather & Crop Outlook

• Indonesia: Weather conditions remain broadly supportive, but the lag from previous underwhelming harvests is keeping inventories constrained. No relief expected in the very short term.
• Madagascar: Some patchy rainfall reported but insufficient to materially augment near-term output or replenish stocks.

🌐 Global Production & Inventory Comparison

Country	Current Stock Status	Export Activity	Import Demand
Indonesia	Low	Constrained	High (Domestic priority)
Madagascar	Low	Reduced	Steady
India	Stable	N/A	Strong

📆 Trading Outlook & Recommendations

• Buyers: Consider timely procurement; upside risk dominates due to supply tightness and stable demand.
• Traders: Hold existing stocks; potential for minor appreciation if supply constraints persist.
• Producers: Prioritize contract fulfillment and monitor input prices; smaller carryover stocks mean stronger negotiating position.
• Downside Risk: Limited for now; only a significant change in currency or a surprise bumper crop would alter dynamics.

⏳ 3-Day Regional Price Outlook

Region/Origin	Exchange/Market	Current Price (EUR/kg)	3-Day Forecast	Sentiment
India (New Delhi)	Physical FOB	9.60 – 9.70	9.60 – 9.75	Stable to Firm
Indonesia	Intl. Market	≈10.00 USD	≈10.00 – 10.10 USD	Firm