In recent days, fluctuations in prices in the Indian pepper market not only made the world “dumbfounded” but also made the pepper pepper producers and traders nearly lost their way.
From the surprise …
Demand for pepper in the world increased an average of 5% per year, but production in pepper growing countries decreased, so it was confirmed that in 2011 the world will be short of about 35,000-40,000 tons of all kinds of pepper.
The International Conference on Pepper in Bali Indonesia, organized by IPC at the end of last year, continued to affirm that in 2012 the world will continue to have a shortage of pepper despite the expected production of 320,000 tons compared to 298,000 tons. of the previous year. In which, the leading pepper producing countries, India, reduced 5,000 tons to 43,000 tons, Vietnam will increase 10% to 110,000 tons and Indonesia will increase 24% to 35,000 tons.
However, the term price of pepper on the Kochi-India market from the beginning of the year until now only saw an increase, not decreased.
Remember, the first record on the world futures market was recorded on November 1, 1999 with Rs 265 a kg for buckets and Rs 275 for options. By April 30, 2011, that is, after two and a half years, setting a new record of Rs 280 / kg for pepper and 290 Rs / kg for selected. The market manager then said that prices are heading to 300 rupees / kg will not be far away when there has not been a year when the world pepper market increased as hot as in 2011.
Not only, pepper prices the world set a record high in 2011 on September 21 when the selection reached Rs 364 / kg and the bucket reached Rs 360 / kg, an unprecedented high, and no professional pepper trader dared think of. Later pepper prices The world turned down and is expected to rise again when the main producing countries finish this year's pepper harvest.
It should be affirmed that by this time of early harvesting, India has only about three-fourths of the production and Vietnam, the country with the world's leading production, has only one-third of the harvest area. But world pepper prices have been extremely hot. A new record was soon set on March 7, 2012, when the Indian market was priced at Rs 400 a kg for pepper and Rs 413 for kg for pepper. A record price that according to a broker “not even dreamed of thinking”, and world pepper market analysts could only repeat the words “increase, increase and increase; hot, hot and hot; Spicy, Spicy and Spicy “… to talk about Indian pepper market right now.
Not only surprised world pepper traders but also those who are interested in the Vietnamese pepper market are equally surprised, because “the whole world is stirring and Vietnam is as calm as it is”.
The chart shows that recent prices of pepper on the 2 exchanges are mixed
… to disorientation
When information is available SMX floor in Singapore will put pepper into futures trading, goods sourced from a bonded warehouse in Vietnam, not only making exporters but also farmers of our country rejoice. Because the distance to consumers is shortened, it means that our pepper has less intermediary stages and producers will benefit. And the happiness doubled when in the first trading session on 10/2/2012, the starting price of 550 gr / l pepper, the common pepper in Southeast Asia, was set for the delivery term. March was 6,050 USD / ton.
But “short fun like no gang” when pepper prices term at NCDEX (India) continuously increased, setting new peak with sky-high price of approximately 8,700 USD / ton, term term at SMX (Singapore) remained sluggish, fluctuating around prices. 6,000-6,500 USD / ton, difference of more than 2,000 USD / ton, is not acceptable.
The local traders in the early days also monitored prices on the Sing to buy and sell, and then have to wait for prices from exporters. But when the two floors were contradictory, the awkwardness was evident in all genders in the domestic market. The trading price of the day had to be adjusted again because it was unknown which floor to choose. Most recently, while the Indian floor was normal, with daily trading volume maintained around 5-6 thousand tons, the Sing floor did not have an open contract that made the business really disoriented.
Looking at the current pepper trading floors, it suddenly occurred to us: I don't know what our country's managers thought when they built the BEC floor (in Buon Ma Thuot) and let Trieu Phong cargo floor trade coffee, in When the intention to build the cashew floor, pepper is the No. 1 item in the world is still open. Does the export of all kinds of agricultural products occupy the leading position really solid or still have many other dependencies?
English
Source TTVN / CafeF
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