CLOVE IS NOW AN INVESTMENT COMMODITY RATHER THAN CONSUMER COMMODITY :-

CLOVE INTERIM UPDATE FEBRUARY 2024:

Good Morning and Good day to all my readers and followers.

Tamatave, Madagascar, 17th Feb 2024 : Clove, like any many other agri commodities, now has become an industrial commodity. More than trading for consumption, now many are trading it only for investment. Therefore, what all would happen in stock market, or in commodity futures market, same is happening in clove as well. In short, clove is now an investment commodity. ROI is very high on strategical investment. Meaning there by, Clove has grown as an Investment Commodity.

Present situation, looking at fundamentals, usd 9500 per mt is the probable highest price possible on cnf basis. Current market is already at 9300 to 9500 level. However, on technical factors, it can move above usd 10,000 as well. And cannot be surprised if it trades above 10500 also, because of technical factors, market making and speculative trade and cycle trading as well by Investors and Speculators.

Indian situation, currently between INR 820 to 850 level possibly would jump to 900 and above and can expect upto 950-980 range easily because of upcoming festive demands, and shortage of stock in some locations in India for daily trading. In some locations in India, some stockists and traders and keeping stock (or hoarding stock!) anticipating high price! And this hoarding back stock creates shortage of stock and causes price increase + actual festive season demand would move Indian local price up. And it is habitual in India that during festive season, investment trend by traders and other market players increase, and most traders and investors enter this market with an eye on higher ROI and that thrust also would price up in Indianlocal market. This would create more import demand, which supports international trade amd international price.

Along with this, all are looking at Indonesia to see whether they would come to international market to import. If Indonesia starts import from Africa or Dubai or Brazil or from Singapore, then, international price can, I repeat, can, increase clove price intwrnationally as well. However, there is one fundamental factor which happened last year also, that when international price moved above usd 9800, Indonesia stopped buying and exit from market, because for them, clove at 9800 level is not profitable to use in cigarette industry!!

With all the above possibilities, let us lookforward to clove market in coming days, and wait for further update. GIRISH WHATSAPP +261331096095