Market sources said that a considerable amount of new-season black pepper from Cambodia was flowing strongly into our country in the past few days, causing domestic pepper prices to level off.
Read more: >> World pepper prices were stable, Vietnamese pepper prices increased in both domestic and export markets
Purchase of pepper in Dong Nai
This morning, prices of black pepper in key production areas adjusted down simultaneously by 2,000 VND / kg due to weak buying demand from both white pepper processors and exporters. The price of black pepper in the domestic market is currently fluctuating at 58,000 – 60,000 VND / kg, down 4,000 VND / kg from the peak of this year’s crop about 10 days ago.
The domestic pepper market often lacks buying power from exporters in the first few days of the month, while market sources say a significant amount of new-season black pepper from Cambodia is flowing strongly into our country in a few days. Over the past day, domestic pepper prices have slowed down.
In addition, the sharp drop in white pepper demand from exporters forced many white pepper processing facilities in Dong Nai and Ba Ria – Vung Tau to temporarily shut down and stop purchasing and processing within 2 weeks, causing black pepper prices. Bucket in the water reversed decline.
At the same time, the buying power of retail speculators in the domestic market almost also decreased when black pepper prices recovered to VND 60,000 / kg about 3 weeks ago, when pepper farmers were still collecting. final stage planning.
Meanwhile, yesterday Monday 7/5, spot pepper prices in India were stable at Rs 33,500 / quintal (equivalent to 5,008 USD / ton) for peppercorns and Rs 35,500 / quintal (equivalent). equivalent to 5,307 USD / ton) for selected pepper, down to 38.5% over the same period last year (exchange rate 1 USD = 66.8924 rupees).
On the contrary, although just restarted trading of pepper futures on NCDEX since July 20, 2017, perhaps not attractive enough because the institutions are somewhat narrow in the scope of trade. transactions are less and less, not enough to cover operating costs, so pepper futures in India have no longer traded since April 20. Although there is no information from the floor about this, but it may be because there have been many sessions without any buying / selling volume, so the exchange did not release data on the final report.
According to the Pepper Growers Association of Karnataka State, now the largest pepper growing state in India, this year’s pepper harvest has just been completed with a total production of around 55,000 tons in India. With this output, the Indian pepper spice industry must rely on imported pepper for processing and re-export, with a total demand of more than 80,000 tons.
According to Trade Statistics of India, out of 30,400 tons of pepper imported in 2017, about 60% was pepper from Vietnam. The remainder came from neighboring countries and from IPC members. Meanwhile, India exported in 2017 to 18,270 tons of pepper of all kinds, which means adding more than 12,000 tons for domestic consumption.
According to a trade report last week of the World Pepper Association (IPC), the price of black pepper in India increased slightly, while the Cambodian black pepper grade 550 Gr was offered at $ 3,230 / ton and the Madagascar black pepper grade 560 Gr offered. price 3,260 USD / ton. Other sources remain stable.
English
According to the Economic lifestyle / CafeF
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