This price is much higher than the average export price of black pepper of 5,637 USD / tonne in 2011, opening a bright prospect for Vietnam's pepper industry.
The Singapore Commodity Exchange (SMX) began trading black pepper futures from yesterday 10/2, also the first agricultural product to be traded on this floor.
Accordingly, the price of black pepper delivered in March ended the first session at 6,050 USD / ton. During the session, prices ranged from 5,950 to 6,070 USD / ton, with 125 contracts successfully executed.
Earlier, SMX announced that the trading source on this floor will be taken from a bonded warehouse in Vietnam – the largest producer and exporter of pepper in the world. In addition, pepper contracts on this floor can provide standard prices for black pepper worldwide if liquidity is good.
Vietnam's pepper currently accounts for 43% of the world market share of pepper. Indonesia, Malaysia, Brazil, India, Sri Lanka together take up the remaining market share.
Black pepper traded on Singapore, the world's first term pepper floor, is black pepper standard 550 gr / liter, a popular pepper in the Asian market.
According to the Vietnam Pepper Association (VPA), in 2011 Vietnam exported 99,918 tons of black pepper, reaching an average price of 5,637 USD / ton, an increase of 2,136 USD compared to the average price in 2010.
Thus, the starting price on the SMX is relatively high, opening up a bright prospect for Vietnam pepper industry.
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