The Delhi clove market finds itself in a balancing act, with prices subdued due to persistent selling pressure amid robust import arrivals. For the past four to five months, an uninterrupted flow of cloves into the market has prevented any significant price rallies, keeping rates locked in a narrow band. Currently, overseas suppliers hold ample inventories, making domestic buyers hesitant to commit, further tempering demand. Even as quality Indian cloves attract attention for their organic certifications and stability, the market remains cautious, deterred by the fear of oversupply and the potential for further price erosion if import trends continue.
Short-term prospects look stable but uninspiring, with most analysts forgoing bets on a major rally unless there’s a discernible drop in import arrivals. While the domestic harvest season is still some months away, the interplay between global supply chains and seasonal weather disturbances will determine if this equilibrium holds or gets shaken. For now, exporters and traders are watching weather patterns—particularly in key producing countries such as Indonesia, Madagascar, and Tanzania—for any hints of yield disruptions that could tip the scales back in favor of firmer prices.
Exclusive Offers on CMBroker
Cloves
whole
FOB 9.55 €/kg
(from IN)
Cloves
ground
FOB 9.65 €/kg
(from IN)
📈 Prices
| Product | Form | Origin | Location | Delivery Terms | Closing Price (EUR/kg) | Prev. Price | Weekly Change | Sentiment |
|---|---|---|---|---|---|---|---|---|
| Cloves | Whole | India | New Delhi | FOB | 9.55 | 9.50 | +0.05 | Neutral/Bearish |
| Cloves | Ground | India | New Delhi | FOB | 9.65 | 9.60 | +0.05 | Neutral/Bearish |
🌍 Supply & Demand
- Steady arrivals from overseas (notably Indonesia and Madagascar) are maintaining ample supply amid weak domestic buying.
- Importers have built comfortable inventory positions, exerting downward pressure on spot and forward prices.
- Consumption remains seasonally average, with festivals providing only a modest demand boost.
📊 Fundamentals
- Global Stockpile: Major exporters hold surplus inventory, limiting volatility.
- Speculative Positioning: Little speculative buying due to absence of a bullish trigger; traders are cautious, awaiting any reduction in import arrivals as a price catalyst.
- Last Report Comparison: Market sentiment and price bands have not changed materially since the last report; pressures from imports remain the primary theme, keeping prices in check.
⛅ Weather Outlook
- Key clove-producing regions in Indonesia and Madagascar are currently experiencing typical monsoon patterns. No significant weather threats are predicted for the next fortnight, suggesting that supply flows will continue smoothly.
- India’s weather is stable in clove production areas; no significant crop threats have been reported.
- Watchful eyes remain on Southeast Asia for tropical cyclone activity that could change the supply situation abruptly.
🌐 Global Production & Stocks
| Country | 2023 Production (est. tonnes) | Stock Level |
|---|---|---|
| Indonesia | 89,000 | High |
| Madagascar | 20,000 | High |
| Tanzania | 8,500 | Stable |
| India | 1,200 | Moderate |
📝 Trading Outlook & Recommendations
- 📌 Buyers: Wait-and-watch approach advised as prices remain rangebound; opportunistic buying possible if import flows ease suddenly.
- 📌 Sellers: Maintain offers near recent price lows to clear inventory but avoid aggressive discounting until there’s a clear market direction shift.
- 📌 Exporters: Prepare for possible uptick in demand if weather in Southeast Asia disrupts supply.
- 📌 Speculators: Low volatility environment discourages aggressive positions; monitor import/export data for early signs of tightening supply.
📆 3-Day Regional Price Forecast (FOB New Delhi)
| Date | Whole Cloves (EUR/kg) | Ground Cloves (EUR/kg) | Sentiment |
|---|---|---|---|
| Day 1 | 9.55 | 9.65 | Neutral |
| Day 2 | 9.52–9.57 | 9.62–9.67 | Neutral/Bearish |
| Day 3 | 9.50–9.56 | 9.60–9.68 | Neutral/Bearish |
