Clove prices in the Indian market have exhibited notable stability in recent weeks, reflecting a blend of weak demand and consistent supply. As of October 5, New Delhi wholesale clove prices hovered around USD 9.25 , remaining broadly unchanged apart from a minimal dip of just USD 0.12 over the past week. This trend is a clear indication that the segment is grappling with soft retail and trade interest, as echoed by multiple market analysts and traders active in the spice sector.
While the ongoing depreciation of the Indian rupee versus the US dollar has resulted in marginally elevated import costs, it has not been significant enough to sway domestic trading sentiments or trigger demand shifts. The climate of quiet trading in India’s spice markets, particularly for cloves, continues to hold sway with market participants generally adopting a wait-and-watch stance. Looking ahead, absent any unforeseen disruptions or spikes in festive demand, price action is anticipated to stay within a narrow range, offering little immediate opportunity for a substantial upswing.
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Cloves
whole
FOB 9.55 €/kg
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Cloves
ground
FOB 9.65 €/kg
(from IN)
📈 Clove Prices and Market Table
| Market | Type | Delivery Terms | Currency | Latest Closing Price | Prev. Price | Weekly Change | Market Sentiment |
|---|---|---|---|---|---|---|---|
| New Delhi (FOB) | Whole | FOB | EUR/kg | 9.55 | 9.55 | 0.00 | Neutral/Weak |
| New Delhi (FOB) | Ground | FOB | EUR/kg | 9.65 | 9.65 | 0.00 | Neutral/Weak |
| India Domestic | Whole | Spot | USD/kg | 9.25 | 9.37 | -0.12 | Steady |
🌍 Supply & Demand Conditions
- 📦 Supply: Ample domestic and robust import supply; no notable disruptions reported.
- 💡 Demand: Trader and retailer activity is tepid; low seasonal/festive demand reflected in weak spot purchases.
- 💱 Currency Impact: Rupee weakness has marginally raised import costs, but no upward price response domestically.
- 🇮🇳 India Focus: Segment remains quiet in line with broader spice market trends.
📊 Fundamental Data & Market Drivers
- 📝 Recent USDA and Crop Reports: No major crop failures or supply shocks noted in key clove-producing nations (Indonesia, Madagascar, Tanzania).
- 📉 Speculative Positioning: Minimal speculative activity reported given lackluster price movement.
- 🌎 Global Inventory: Overall global supply remains comfortable, limiting chances for abrupt rallies.
- 🔄 Comparison to Last Report: Price trend and sentiment essentially unchanged; previous market analysis had also flagged subdued demand and steady to soft prices.
🌦️ Weather Outlook for Key Clove Growing Regions
- 🌧️ Indonesia: Wet weather continues to support clove tree health, with no signs of disease pressure or drought stress reported.
- ⛅ Madagascar/Tanzania: Normal growing conditions noted, with near-average rainfall enhancing yield prospects and fruit set quality.
- 🌡️ Indian Subcontinent: Stable post-monsoon climate, with no significant threats to storage or import logistics from inclement weather.
- Analysis: Overall, prevailing weather conditions are supportive of healthy upcoming yields and unimpeded market flow.
🌏 Global Production & Stock Comparisons
| Country | 2023 Production (est.) | 2024 Outlook | Inventory/Ending Stocks (est.) |
|---|---|---|---|
| Indonesia | ~85,000 tons | Stable, good weather | Ample |
| Madagascar | ~30,000 tons | Slight Increase | Moderate |
| Tanzania | ~15,000 tons | Slight Increase | Adequate |
| India (imports) | Domestic: Low | Dependent on imports | Sufficient |
- Global production is stable; no major supply shortfalls on the horizon.
- Inventories in India remain healthy due to consistent import flows.
📆 Trading Outlook & Recommendations
- 🔹 Buyers: Hold off on spot/cash purchases unless immediate needs arise, as no supply crunch is foreseen.
- 🔹 Sellers: Consider offering at market to maintain liquidity; large holding unlikely to yield higher prices soon.
- 🔹 Importers: Hedge currency risk, particularly if rupee volatility continues.
- 🔹 Speculators: Cautious approach advised; range-bound movement offers little breakout opportunity near-term.
⏩ 3-Day Regional Price Forecast
| Exchange/Market | Type | Price Forecast | Sentiment |
|---|---|---|---|
| New Delhi (FOB) | Whole | 9.55 EUR/kg | Steady |
| New Delhi (FOB) | Ground | 9.65 EUR/kg | Steady |
| India (Spot) | Whole | 9.20-9.25 USD/kg | Steady |
- Expect minimal change in pricing over the next three days barring surprise demand surge or supply disruption.