Price of pepper futures still maintained the heat in the domestic market while prices of foreign-origin pepper were firmer last week on supply pressure amid a number of positive trends.
Last week, in the domestic market, new arrivals continued to arrive but very little.
The dealer in Tamil Nadu directly subsidized the grower in Idukki and Wayanad districts of Kerala in cash and made on the basis of futures market prices. Some factories are also buying farm grade and semi-processed pepper for sale, market sources said. Agents and farmers in Karnataka state also did not sell their products even though they also raised prices.
IPSTA has been allowed to raise the daily fluctuation limit from Rs 500 to Rs 1,000 a quintal.
During the week, the contracts for August, September and October soared to Rs 1,144, Rs 1,538 and Rs 1,340, respectively, to Rs 41,750 per quintal, Rs 42,050 per quintal and Rs 41,850 per quintal (equivalent to US $ 7,071 per tonne). 7,122 USD / ton and 7,087 USD / ton). (1 USD = 59,0478 lakhs)
Total revenue increased from 17 tons to 199 tons. Open interest dropped by 16 tonnes and 83 tonnes. Spot price increased to Rs 900 to close at Rs 38,900 a quintal (equivalent to US $ 6,588 / ton) for all kinds of pepper and Rs 40,900 / quintal (6,927 USD / ton) for the selected type.
The Indian parity in the international market is around US $ 7,200 per tonne (c & f) for Europe and about US $ 7,350 per tonne (c & f) for the US and still costs more than other origins.
Trends abroad
According to a report from abroad, Vietnam exported more than 85,000 tons of pepper, from the beginning of the year to the end of June. Reports from Indonesia recorded a 20% decline in this crop. Supply from Indonesia is currently tightening due to Islamic holidays and limited supplies.
In Brazil, while exports have not yet begun, the market is strengthened as there has been a lot of activity in selecting pre-orders. Brazil's crop output is expected to be similar to last year.
While pepper has been tied for the past few months, the current shortage situation is likely to put pressure on prices, the report said.
Source Business Line / Giacaphe.vn
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