According to recent reports, global demand for cloves has been strong, leading to sustained high prices despite some recent increases. While production levels have been mixed across different origins, favorable 2022-23 crops in some areas have been offset by disappointing harvests elsewhere. As a result, the underlying supply of cloves is expected to become increasingly limited by April due to estimated exports so far and dwindling carry-over stocks.
The latest price indications from European traders suggest that Indonesian cloves are currently trading around $8,750 per tonne cfr Singapore, while Madagascar cloves are in the range of $8,700/tonne cif Singapore. Just a few weeks ago, Madagascar cloves were indicated at $8,400/tonne cif Singapore.
The Comoros cloves crop was reported to be very good due to favorable weather, with an estimated production of 6,000 tonnes, compared to a “normal” crop of about 3,500-4,000 tonnes in previous years. Meanwhile, the Zanzibar crop was described as normal, with an estimated production of about 4,000 tonnes.
However, the Madagascar cloves crop fell short of expectations, with a production of only 11,000-12,000 tonnes, compared to 22,000-23,000 tonnes in the previous year. Additionally, for the third consecutive year, the Indonesian crop was very short, with an estimated production of only 55,000-60,000 tonnes, which is less than half of what this origin achieves during a good harvest.
Brazil’s contribution to the global supply of cloves is negligible, with its 2022-23 crop estimated at no more than 2,000 tonnes. Most of this was sold to the US and South America, mainly for the production of cloves powder. The quality of this year’s harvest is said to be very poor.
In conclusion, while demand for cloves remains strong, the limited supply of the spice, due to mixed production levels and poor harvests in certain origins, is expected to lead to sustained high prices in the coming months.