Indian pepper market rebounded after the convergence of March price with spot prices and then both increased. This phenomenon has affected nearby contracts and therefore all contracts increased significantly last week.
The new crop continues to put selling pressure in Karnataka state and makes the market significantly stagnant. They supplied pepper at Rs 330 a kg delivered anywhere in India. There was liquidation in March and there was a decline in open interest although prices were up. “They want to push up March prices,” the market source said Business Line know .
Those who hold long positions, those who are on guard, want to receive real goods but they are afraid of providing pepper on the exchange, they said. March deliveries are traded on positions that have been liquidated and out of the market. The report shows that Karnataka pepper is delivered and delivered around the country with prices ranging from Rs 330 – 370 Rs / kg depending on the quality, such as moisture content, density etc.
In Kerala, farmers do not care to sell at the current rate, they say. Leading Indian exporters and international traders are active in Karnataka and Kerala markets, which has triggered speculators to push prices up.
The majority of domestic demand is favored, looking for low-density pepper, which is met by supplies from Karnataka and other regions, while from areas such as Maharashtra and parts of Tamil Nadu. pepper is of great importance to Kerala.
Trade opinion said that to avoid the evasion of state government revenue tax should reduce the VAT on pepper from 5% to 2% and the state sales tax will not be affected, while the Legitimate truth is easy to do business and therefore farmers will get higher profits.
Pepper production in Kerala state was less due to drought conditions in Idukki district and other districts as well as epidemics in some districts.
According to the International Pepper Community (IPC), this year's supply and demand situation can be balanced and expected prices to stabilize. At the same time, domestic demand is expected to remain at a good level and thus domestic prices are likely to be firmer.
On NCDEX, all contracts traded last week increased significantly. March, April and May increased by Rs 1,570, Rs 1,535 and Rs 1,535, respectively, to close at Rs 37,300 a quintal, Rs 35,765 a quintal and Rs 35,725 a quintal (equivalent to USD 6,871 per tonne, USD 6,588 per ton). tons and 6,581 USD / ton). (1 USD = 54,288 rupees)
Total turnover increased by 1,650 tons to 12,805 tons. Total open interest dropped by 1,049 tonnes to close at 12,593 tonnes.
Spot price increased by Rs 500 to close at Rs 35,000 / quintal (USD 6,447 / ton) for the pint and 36,500 Rs / quintal (USD 6,723 / ton) for the MG 1 selected grade compared to the closing price. last weekend's door.
Source Business Line / Giacaphe.vn
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