In the world futures market, in the last few sessions of February, prices soared because of overbought.
Session closed on 2/3, on the Indian floor (NCDEX) after only two plummeting sessions, pepper price for March delivery decreased a total of Rs 2,450, to Rs 37,160 / quintal, an decrease of USD 497, equivalent to 6 , 19%, to US $ 7,541 / ton. May delivery also dropped by Rs 2,230, to Rs 37,575 a quintal, or US $ 453, or 5.6%, to US $ 7,626 / ton. While the price of spot pepper decreased only Rs 759, to Rs 37,500 a quintal, or a decrease of USD 154, equivalent to 2.01%, to USD 7,610 / ton.
The very low rate of reduction of spot pepper prices indicates that India's demand for pepper is still high as the supply of pepper has not improved so far, although the country has entered a new harvest.
Pepper price traded on SMX-USD / tonne (source: CafeF)
Similar to the same day, on Sing (SMX-Singapore), with 2 turning sessions, the term for March delivery dropped by USD 399, equivalent to 5.96%, retreating to USD 6,295 / ton and April delivery also. down 639 USD, or 9.5% to 6,086 USD / ton, the reduction is also very strong.
According to the exporters, the information that Vietnam, which is the number one exporter of pepper in the world, will reduce 30% of export volume to about 86,000 tons in 2012 and information spread everywhere. The market is even more worried about the lack of continuous supply in the past few years.
In the world futures market, in the last few sessions of February, prices soared because of overbought. Meanwhile, domestic prices increased slowly because our country's exporters were only used to selling real goods “buy now and sell now” but have not taken advantage of the forward market.
According to the forecast of the World Pepper Association (IPC) in 2012, this year's world pepper output will increase by 21,755 tons or 7.3%, to 320,155 tons, compared to 298,400 tons of 2011.
This year's output increased mainly from the world's leading pepper producing countries, members of IPC, such as Vietnam (up 110,000 tons, up 10%), Indonesia (up 41,000 tons, up 24%), Malaysia. (up to 26,500 tons, an increase of 5%) … IPC's information has helped alleviate the worry about the supply, but the world has not only added 21,755 tons or 7.3% is sufficient.
According to Reuters news in recent years, each year the world lacks from 35,000 to 40,000 tons of pepper of all kinds. This figure cannot easily be offset in the near future when widespread pest and disease epidemics are destroying crops everywhere.
Therefore, the price of pepper plummeted is only seen in the futures market, but in fact the price of pepper remains high.
This morning, March 4, the price of black pepper in Ba Ria-Vung Tau has re-established the milestone of VND 130,000 / kg after being dropped at the futures market price in the past 2 days.
English
Source TTVN / CafeF
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