In the past week, Indian pepper market continued its uptrend with domestic buying support in the context of limited supply and exciting market activities. High demand for the festival Pongal keeps agents in Tamil Nadu actively seeks direct sourcing from farmers at futures market prices.
Besides, a good quantity of pepper is retail for pilgrims returning from Sabarimala. The supply of pepper from Kerala was not as expected as worsening weather prevented the harvest.
The result of the competition between bulls and bears is the high volatility of the market when both sides strive to push prices up and down.
Business statistics report shows that as of Friday 11/1, February term had 2,552 tons of goods traded, accounting for more than 81% of trading volume. In the weekend session, the February term also accounted for more than 80% of the transactions and the number of open contracts was also lower, trade sources said.
The gap between futures prices and spot prices continued to widen from the previous week. Therefore some traders on the floor must buy protection and leave the market.
The difference between the February futures price and the spot price will be sustained.
A very large number of pepper, estimated at 8,000 tons, owned by speculative corporations are still sealed in the warehouse of the floor, until now the direction of handling is unclear. On the other hand, the January term was not listed because the floor thought it was a weak trading month.
Meanwhile, some high-quality second hand goods that have been in stock for 7-8 years have been bought by investors to dealers in Kumili for Rs 390 a kg to retail Sabarimala pilgrims. Usually, pepper is stored for a long time will lose its aroma and spicy taste will not be exported.
Trade, therefore, is suggested that managers should convert pepper in the warehouse every year if there is no basis for storage with a stable temperature.
Demand for pepper is great but currently not available. Someone has ordered pepper from Idukki at a high price of Rs 380 / kg but still no seller.
The agents have directly purchased new pepper from farmers at the futures price.
Last week, on NCDEX-Kochi, all contracts were traded increased. February, March and April contracts respectively increased by Rs 610, Rs 460 and Rs 290 to close the week at Rs 35,980 a quintal, Rs 34,765 a quintal and Rs 34,315 a quintal (equivalent to 6,564). USD / ton, USD 6,343 / ton and USD 6,261 / ton). (1 USD = Rs 54,810).
Total turnover increased by 4,180 tonnes to 12,209 tonnes, while total open interest dropped by 186 tonnes to close at 3,444 tonnes.
Spot prices, in tandem with the futures market trend, increased by Rs 300 on Saturday at the weekend to close at Rs 37,700 a quintal (US $ 6,878 / ton) for all kinds of pepper and Rs 39,200 per quintal (equivalent). (US $ 7,152 / ton) for MG 1 selected type because of good support.
Indian parity in the international market with spot prices for January stood at US $ 7,700 per tonne (c &) and is still negotiable. However, February delivery at current market price is now 6,800 USD / ton for Europe and 7,000 USD / ton for US and still almost competitive. Vietnam Asta and Lampong Asta pepper were at US $ 7,000 / ton while MLV Asta at US $ 6,950-7,000 / ton for February / March delivery.
Source Business Line / Giacaphe.vn
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