After declining in recent days, pepper price in the Indian pepper market rose again in the trading session on 11/11 thanks to strong buying support and limited supply.
Pepper prices in all futures contracts rose sharply with November pepper prices breaking through the first resistance level, while prices in other major pepper contracts all rallied. However, the depreciation of the rupee against the US dollar has kept the Indian pepper equivalent in the international market at a competitive level.
The market has no selling pressure. Even investors holding pepper on the exchange did not place sell orders, instead switching to buy pepper delivered at other near-terms.
Pepper prices in Karnataka increased to Rs 325-330/kg, showing that pepper stocks here are starting to run out. However, pepper holders in the northern hubs of India are selling below the asking price in the main pepper growing regions. Therefore, this also signals that domestic demand in the Indian market is weak.
However, traders also said that the scarcity of available spot pepper in the market does not seem to affect exporters as their orders can be fulfilled by the supply of pepper supplied by the exporters. investment on holding exchange. At the same time, traders also said that foreign buyers are looking for a source of high-quality pepper. 1. Besides, pepper is an essential spice in Europe and the US, especially during the holiday season. Christmas and New Year.
Some buyers are also looking to source lower grade pepper. Vietnam is currently only offering lower quality pepper and thus receives many orders from foreign buyers. These factors will support the price of pepper to rise.
On the Indian market, the price of pepper for November delivery increased by Rs 1,015, to Rs 34,080 per quintal. Pepper prices for December and January delivery increased by Rs 880 and Rs 875 respectively. Up to Rs 34,700/quintal and Rs 35,050/quintal.
Spot pepper price is affected by price movements in the futures market and strong demand and limited supply, also surged by Rs 500/quintal to Rs 32,700/quintal for untyped pepper and Rs 34,200/ quintal for grade 1 pepper.
The equivalent price of Indian pepper on the world market is at $7,350 – $7,400/ton (c&f). The weak rupee has helped to keep Indian pepper prices competitive in the world market.
World pepper price trend
According to a report from Vietnam, pepper prices are stable due to limited supply. Prices of 500 GL and 550 GL pepper were offered at $6,750/ton and $7,100/ton, respectively. Price of white pepper at 9,000 USD/ton.
Meanwhile, buyers on the New York market reported offers from several suppliers: Lampong Asta MG 1 (aof) $7,525-$7,625; Vietnam Asta $7,700 – $7,800; Vietnam Asta New Season (afo), Brazil Asta – $7,050-$7,100 (fob); Brazil B2 – $6,950-$7,000 (fob).
Price of white pepper offered for sale at: Vietnam $10,000; Muntok $10,400 and Ecuador $10,200.
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