The world futures market in the last few sessions of February skyrocketed because it was overbought, and now it is turning down sharply to speculate on the price.
Closing the session on March 2, on the Indian Exchange (NCDEX) after only 2 plunging sessions, the price of pepper for March delivery fell a total of Rs 2,450, to Rs 37,160/quintal, or $497, equivalent to 6 USD. .19%, remaining 7,541 USD/ton. Futures for delivery in May also fell by Rs 2,230, to Rs 37,575 per quintal, or down by $453, or 5.6%, to $7,626 per ton. While the spot price of pepper only decreased by Rs 759, to Rs 37,500 per quintal, or down 154 USD, equivalent to 2.01%, to 7,610 USD/ton.
The very low rate of decline in the spot price of pepper shows that the demand for pepper in India is still high because the supply of pepper has not improved so far despite the country entering the new harvest season.
Pepper price traded on SMX-USD/ton (source: CafeF)
Similar on the same day, on the Sing Exchange (SMX-Singapore), with two turning sessions, the March delivery term fell by $399, or 5.96%, retreated to $6,295 per ton and the April delivery term also decreased by 639 USD, equivalent to 9.5% to 6,086 USD/ton, the decrease was also very strong.
According to exporters, the information that Vietnam, the country that occupies the No. 1 position in exporting pepper in the world, will reduce the export volume by 30% to about 86,000 tons in 2012 and the information about the epidemic spreading everywhere has caused The market is more and more worried about the lack of capital supply in the past few years.
The world futures market in the last few sessions of February skyrocketed because it was overbought, and now it is turning down sharply to speculate on the price. Meanwhile, domestic pepper prices increased slowly because our country’s exporters were only used to selling real goods “buy now and sell immediately” but did not take advantage of the futures market.
According to the forecast of the World Pepper Association (IPC) in 2012, world pepper production this year will increase by 21,755 tons or 7.3%, to 320,155 tons, compared with 298,400 tons in 2011.
The increase in output this year mainly comes from the world’s leading pepper producing countries, which are members of IPC, such as Vietnam (up 110,000 tons, up 10%), Indonesia (up 41,000 tons, up 24%), Malaysia (up 26,500 tons, up 5%)… Although IPC’s information has helped alleviate concerns about supply, the world has not only added 21,755 tons or 7.3%.
According to Reuters news agency in recent years, each year the world lacks from 35,000-40,000 tons of pepper of all kinds. This number cannot be easily offset in the near future when pepper diseases are rampant and climate change is destroying crops everywhere.
Therefore, the plunge in pepper prices can only be seen in the futures market, but in reality, pepper prices still remain at a high level.
This morning 4/3, the price of black pepper bucket in Ba Ria-Vung Tau has re-established the mark of 130,000 VND/kg after falling according to the futures market price in the past 2 days.
English
Follow TTVN/CafeF
Source link
