Clove prices have entered a period of unusual stability, holding steady at around USD 9.23 per kg in the main producing regions. The market’s persistent stagnation is underpinned by a combination of slack demand and reduced buying activity. Despite a temporary uptick of USD 0.12–0.18 per kg during the previous week, the reinforcement of the U.S. dollar has compounded bearish sentiment and discouraged aggressive purchasing from both international and local traders. Analysts agree that without a significant surge in end-user demand or speculative interest, the prospect for a near-term price recovery remains dim.
Instead, the market is forecasted to remain firmly range-bound—a scenario marked by sideways trading and lackluster movement. In this environment, producers might hold back stocks in hopes of better prices down the line, while buyers are likely to adopt a cautious, wait-and-watch approach. With weather conditions and currency fluctuations looming as potential wildcards, market participants will be watching closely for any sign of a turnaround.
Exclusive Offers on CMBroker
Cloves
whole
FOB 9.50 €/kg
(from IN)
Cloves
ground
FOB 9.60 €/kg
(from IN)
📈 Prices & Exchanges
| Product | Type | Origin | Location | Delivery Terms | Currency | Last Price | Previous Price | Weekly Change | Sentiment |
|---|---|---|---|---|---|---|---|---|---|
| Cloves | Whole | India | New Delhi | FOB | EUR | 9.50 | 9.55 | -0.05 | Bearish/Sideways |
| Cloves | Ground | India | New Delhi | FOB | EUR | 9.60 | 9.65 | -0.05 | Bearish/Sideways |
🌍 Supply & Demand
- Supply: No recent supply shocks; sufficient inventory at origin.
- Demand: End-user and industrial buying weak, further exacerbated by cautious importers amidst uncertain global macro conditions.
- Speculative Activity: Minimal, with most trading houses waiting for clearer signals.
- Currency Impact: Persistent strength in the U.S. dollar keeping export prices under pressure for buyers outside the U.S.
📊 Fundamentals
- Global Production: Indonesia and Madagascar remain the largest producers. Indian output stable; early monsoon supportive of crop health.
- Stock Levels: Inventory in producing regions remains ample, no urgency for sellers to offload stocks at discounted prices.
- Importing Countries: Demand from Europe and Middle East sluggish; no intervention or unusual buying reported recently.
🌦️ Weather Outlook & Impact
- Indonesia: Monsoon patterns stable, reducing risk of crop losses in main clove-producing provinces (Maluku, Sulawesi).
- India: Post-monsoon conditions in Kerala and Tamil Nadu remain favorable, supporting steady development for the next harvest cycle.
- Madagascar: Normal weather pattern, ensuring harvest is unimpeded.
- Impact: No adverse weather threats; supportive backdrop for yields.
🌐 Global Production & Stocks Comparison
| Country | Est. 2024 Production (tons) | Stock Status |
|---|---|---|
| Indonesia | 85,000 | Ample |
| Madagascar | 15,000 | Ample |
| India | 5,000 | Stable |
| Sri Lanka | 2,500 | Moderate |
| Brazil | 1,800 | Low |
📌 Market Drivers
- Sideways sentiment due to muted demand—no immediate catalysts for a rally.
- Pricing under pressure from strong U.S. dollar.
- Sufficient stocks in key origins keep panic selling at bay.
- Stable weather conditions, no expected supply-side disruptions.
📆 Trading & Outlook
- Short-term: Range-bound with mild downside risk if demand weakens further.
- Buyers: Consider just-in-time purchasing; no urgency to build positions.
- Sellers: Hold for potential improvement; avoid aggressive discounting unless stocks need to be moved.
- Watch for: Currency shifts, sudden demand spikes, or weather anomalies as possible inflection points.
⏳ 3-Day Regional Price Forecast
| Region/Origin | Price (USD/kg) | Price (EUR/kg) | Trend |
|---|---|---|---|
| India FOB – Whole | 9.23 | 9.50 | Sideways |
| India FOB – Ground | 9.23 | 9.60 | Sideways |
| Indonesia (Benchmark) | 9.25 | 9.52 | Sideways |