Pepper prices continue to decline across the markets

Pepper prices continue to decline across the markets
Pepper prices continue to decline across the markets
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Exporters of pepper are stepping up the offer of low quality grades, mainly those with a weight of 500 Gr or less, while those of high quality are rarely seen.

Trading results last week showed that world futures prices on NCDEX in Kochi-India turned back after setting a record. For the whole week, the April term decreased by Rs 2,645, or 6%, to Rs 41,465 / quintal, equivalent to USD 8,102 / ton and the May term decreased by Rs 2,705, or 6.01%, down to Rs 42,300 a quintal, equivalent to USD 8,266 per tonne, during the closing session of the week, which closed early Saturday afternoon 24/3, (1 USD = 51.1758 Rs).

Spot price for MG1 special pepper only dropped by Rs 436, or by 1.06%, to Rs 40,889 / quintal, equivalent to US $ 7,990 / ton, down slightly. Prices also fell as speculators sold off sharply after pushing up Indian pepper prices to new historical highs. In general, pepper price in India is higher than that of other origins above USD 1,000 / ton.

In the same period, the price of pepper on the SMX floor in Singapore in April decreased by 67 USD, which decreased by 1.01%, to US $ 6,698 / ton and in May increased by 110 USD, or 1.64%, up. 6,821 USD / ton. Although the price gap between the two world pepper markets has been shortened, it is still more than 1,400 USD / ton, which is a huge difference.

Analysts of the world pepper market all say that the current domestic price in India is too high, is not real, it needs adjustments. Meanwhile, pepper traders in Karnataka, in the southern Indian state, continue to import low-grade Vietnamese pepper to supplement the domestic consumption, which is seriously depleted because this year's crop has failed.

Customs statistics in 2011 showed that India is one of the top 5 markets importing our pepper, along with the United States, Germany, the Netherlands and the United Arab Emirates. In particular, India is also a major producer and exporter of pepper in the world, and the export price of Indian pepper is also very competitive. Therefore, traders of this country usually save domestic production for export demand at high prices and import cheap prices from Vietnam for domestic consumption.

Vietnam black pepper for export grade of 500 Gr / l-FAQ offered at USD 6,300-6,350 / ton and 550 gr / l-FAQ for USD 6,650-6,700 / ton (FOB), averagely decreased by USD 250. While white pepper of type DW 630 Gr / l offered at USD 9,500-9,550 / tonne (FOB), down USD 350.

Indian pepper of the special type MG1 exported to Europe was priced at US $ 8,550 / ton and to the US was priced at US $ 8,850 / ton (C&F), down by US $ 100.

This morning, March 26, the price of black pepper at Ba Ria-Vung Tau dropped to 126,000 VND / kg, in Binh Phuoc to 122,000 VND / kg, in Dak Lak-Dak Nong and Chu Se, Gia Lai also cost 120,000 VND. VND / kg, on average, domestic prices decreased by VND 3,000-5,000 / kg over the last week.

According to preliminary statistics of Customs, export in the first half of March reached 8,363 tons of pepper with a turnover of 57.7 million USD. Accumulated from the beginning of the year to March 15, 2012, 20,374 tons of pepper were exported with a turnover of US $ 139.6 million, though only increasing 21.85% in volume but sharply increasing to 73.14% in price compared to with the same period last year. Average export price reached 6,899 USD / ton, standing at a high level.

English

Source TTVN / CafeF


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