Pepper prices in the Indian market last week were not stable due to conflicting reports on pepper production of Vietnam and India.
In the previous week, all contracts traded are having significant price increases. February, March and April increased by Rs 1,070, Rs 1,210 and Rs 1,020, respectively, to close at Rs 39,800 a quintal, Rs 36,900 a quintal and Rs 35,615 a quintal ($ 7,330 per tonne, 6,796 USD / ton respectively). tons and 6,559 USD / ton). (1 USD = 54,2964 Rupees)
Total revenue increased by 1,107 tons to 8,873 tons. Total open interest dropped by 284 tonnes to 3,446 tonnes.
Spot prices, however, did not move in tandem with the uptrend of the futures market. Price increased by only Rs 100, to close at Rs 39,600 / quintal (equivalent to US $ 7,293 / ton) for the bucket type and Rs 41,100 / quintal (equivalent to US $ 7,570 / ton) for the MG1 selected type. On the international market, Indian parity remained at 7,900 USD / ton (C&F) for February delivery, 7,200 USD / ton (C&F) for March delivery and 6,900 USD / ton (C&F) for April delivery.
Domestic demand remained high but the supply from the domestic market was almost empty.
Unfavorable weather and a labor shortage in the labor force seriously affects harvesting, though the crops are still good. The supply is therefore likely to remain limited, keeping prices stable for traders.
Meanwhile, according to Jakarta, based on the report of the International Pepper Community (International Pepper Community), the situation in 2013 will depend on the development of production in the year. In the short term, the market may be slightly affected during the peak harvest time in Vietnam.
“Estimated global production in 2013 will be 10,000-15,000 tons lower than in 2012. The inventory in 2012 is limited, but the output of 2013 is just enough to meet the slightly increased demand. , so prices can be kept up, ”said S. Kannan, CEO of IPC. Business Line.
The average price of January is also higher when compared with the average price of December 2012.
In early January, the market tended to increase as domestic and overseas demand recovered after a year-long holiday.
In January, the domestic market was more active and prices increased in both spot and futures markets. In Vietnam, the market is relatively quiet due to limited supplies and anticipation of a new harvest, expected to begin after the Lunar New Year holiday.
In Lampung, market activity was limited and prices increased. The report said last year's pepper has been sold out, and this year's crop is expected to begin in July and August.
Total exports in 2012 in Indonesia were the highest ever. However, export volume is expected to be low this year.
The exhausted pepper after good yield and subsequent heavy rains during the flowering season is the main reason for the 2013 production decline, according to S. Kannan.
The latest information received from IPC, total export of pepper from producing countries in 2012 (excluding raw materials used to produce pepper oil and oleoresin for export) is 269,600 tons with a value of US $ 1.83 billion compared to 251,000 tons, worth US $ 1.53 billion in 2011.
In particular, Vietnam accounted for the majority of 792 million USD, or about 43% of global income in 2012, followed by Indonesia, Brazil and India.
Source Business Line / Giacaphe.vn
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