Last week, the pepper market continued to tighten and buy speculation. If the first half of the week falls to speculators, it is controlled by the bulls.
The situation along with the weak Rupee caused the closing price to decline throughout the week.
By the end of the week, the October contract was up and the bulls were said to have bought 2,564 tonnes of pepper, bringing the total holding to 5,500 tonnes with an estimated investment of more than Rs 200 million, market sources said. school said.
Asta pepper of other origins is priced at $ 1,600 lower per ton compared to Indian specialty pepper. Vietnam black pepper price at the end of the week increased by US $ 100 / ton compared to the previous week. For a while, domestic demand was provided by speculators in Rajasthan and later Karnataka. Demand in the next few weeks is expected to increase because of the Diwali festival and the upcoming winter season, and at the same time, new sales will begin to be delivered to major markets. It is likely that the import will be higher this year due to relatively high domestic prices. An estimated 15,000 tons of pepper were imported and another 6,000 tons will be imported by the end of December, market sources said.
Last week, world demand was quite low. According to the report, until September Vietnam exported a large amount of pepper. In Brazil, new cases have begun to hit the market. Pepper traders estimate that Brazil's production is about 25,000 tons and that quantity will be sold in the last 3 months of the year.
Indonesia is believed to have sold about 30,000 tons of new pepper and saved more than 10,000 tons. New crop of India is expected to hit the market from mid-December onwards and according to various estimates, pepper production is about 60,000 – 63,000 tons.
On the weekends, the October contract expires, the close contracts all show a decline. The closing price of November contract dropped Rs 5 to Rs 43,510 a quintal and December decreased by Rs 25 to Rs 42,995 a quintal while the February contract increased by Rs 325 to Rs 38,880. (equivalent to USD 8,034 / ton, USD 7,939 / ton and USD 7,179 / ton.), (1 USD = Rs 54,1570)
At the end of the week, spot prices in tandem with the futures market trend decreased by Rs 200 to Rs 40,400 a quintal, equivalent to US $ 7,460 per tonne for pepper and Rs 41,900 per quintal, or US $ 7,737 per tonne for counterweight. with MG1 selection type.
Because many people think that January volume is low, January contract has not been listed yet, but pepper season in Kerala state usually starts from December onwards and lasts until March – April.
Last year, due to erratic weather, the harvest was delayed making the December and January transactions extremely low. But this year it is likely that the situation like last year will not happen again, some pepper farmers confirmed.
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