Last week, the futures market witnessed a mixed trend with close contracts relatively stable while other contracts increased slightly at the end of the week.
In the spot market, prices fell although supply may be tightened on the downtrend created by fears of stockpiling in the market.
Investors with stockpiles at the farms were reportedly in need of liquidation last weekend. They are asking about the price of pepper sold. This phenomenon seems to have created a fear in the market when it is estimated that around 300 to 500 tons of detained pepper will be released.
The amount delivered is very small due to the incessant rain in all major growing areas. Due to the rains, pepper processing at the moment is not possible for most processing plants without modern drying equipment, market sources told Business Line.
Meanwhile, other producers supply pepper at a lower price. Even Sri Lanka is offering 520 Gr / l pepper at US $ 5,859 / ton (c & f) at Kochi. But the buyers still do not move.
Dealers in major markets sold pepper throughout the week probably because of their ability to support each other and lead to lower support prices in the spot market.
During the week, the contracts traded on NMCE market were almost stable with marginal decline. August contract dropped by Rs 20, to close at Rs 40,606 a quintal (US $ 6,843 / ton). September and October contracts increased by Rs 236 and Rs 182 respectively to close at Rs 40,512 a quintal and Rs 40,510 a quintal (equivalent to 6,827. USD / ton). (1 USD = 59.34 lakhs)
Spot prices eased by Rs 500 during the week and closed at Rs 38,000 / quintal (USD 6,404 / ton) for all kinds of pepper and Rs 40,000 / quintal (USD 6,741 / ton) for the selected type, as demand is low and the amount of pepper delivered is limited.
The fluctuations of currency during the week made the special pepper price higher and therefore Malabar pepper was completely higher in foreign markets. Other manufacturers are offering at a much lower price.
Indian parity in the international market was maintained at USD 6,950 per tonne (c & f) for goods destined for Europe and USD 7,200 per tonne (c & f) for US shipments. While Europe is getting ready for the summer vacation, purchasing activities are slowing down.
Source Business Line / Giacaphe.vn
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