Currently, the price of domestic pepper in Vietnam is fluctuating in the range of 120,000-130,000 VND / kg, equivalent to US $ 5,750-6,250 / ton, while the price of domestic pepper in India is US $ 7,250-7,500 / ton.
Closing yesterday, world futures prices on NCDEX in Kochi-India continued a downward trend. The April term lost 680 rupees, down to 40,820 lakhs, equivalent to 134 USD, to 8042 USD / ton and the term in May also lost 875 lakhs, down to 41,470 lakh / quintal, equivalent to 172 USD, down to 8,164 USD / ton (1 USD = Rs 50,7983). The reason for the decline was attributed to profit-taking activities and investors on the floor pushed prices too high.
Spot prices in India also decreased by Rs 500 to Rs 38,000 a quintal, equivalent to US $ 7,481 per ton, for pail and Rs 39,500 a quintal, or US $ 7,776 a ton, for the selected type.
At the same time, term price of pepper on SMX in Singapore also dropped. The April term lost 95 USD, down to 6,556 USD / ton and the May term lost 78 USD, down to 6,622 USD / ton. The price difference between the 2 exchanges remained high.
According to world pepper market analysts, the reason for the price difference between the two floors is that the SMX-Singapore exchange took 550Gr / l-FAQ pepper of Vietnam, which is also a popular type of producer countries. exporting pepper in Southeast Asia, serving as a trading base. While the NCDEX-India exchange took the MG1 class, which is a special type of Indian pepper with a higher quality, as a basis for trading.
Analysts also affirmed that the pepper market often hides unpredictable fluctuations but the high price is not difficult to understand, because in 2012 the world supply is still in shortage and the forecast of production is not very likely. Quan.
A major Indian agribusiness with a farm processing facility in Vietnam said that the basis for comparison is the price of pepper.
Currently, the price of domestic pepper in Vietnam is fluctuating in the range of 120,000-130,000 VND / kg, equivalent to US $ 5,750-6,250 / ton, while the price of domestic pepper in India is US $ 7,250-7,500 / ton, difference of over 1,000 USD / ton.
This gap represents a very high domestic demand because India is the second most populous country on the planet, especially this year's crop production has not reached as expected. Therefore, the need to import more pepper from Vietnam is quite large.
This morning, March 29, pepper prices in the domestic markets continued to slide along the momentum of falling for just 3 weeks. In Ba Ria-Vung Tau, the price decreased to 124,000 VND / kg, in Binh Phuoc, the price was 120-121 thousand VND / kg, in Dak Lak-Dak Nong and Chu Se, Gia Lai, the price was also 118-120 thousand VND / kg. On average, local prices have decreased by VND 10-12 thousand per kg over the past 3 weeks.
Vietnam black pepper for export grade of 500 Gr / l-FAQ is priced at USD 6,250 / ton and 550 gr / l-FAQ for USD 6,600 / ton (FOB), while export grade of 550 Gr / l-Asta has 7,000-7,050 USD / ton with limited quantity. White pepper of type DW 630 Gr / l was offered at USD 9,300-9,350 / ton (FOB).
Indian pepper, a special type of MG1, was priced at 8,350 USD / ton exported to the EU and priced at 8,650 USD / ton exported to the US (C&F).
According to the report of Agriculture sector, export turnover is estimated at 12,000 tons in March, export turnover is 82 million USD, bringing export turnover of 3 months to 24 thousand tons with export turnover of 164 million USD, decreasing by 7.5% in volume but still increasing by 29.1% in value over the same period last year. Export price of pepper increased sharply, average price of 2 months reached 6,816 USD / ton, up 42.4% over the same period last year.
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Source TTVN / CafeF
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