Many traders said that pepper prices are rising at a fast pace, but collecting goods becomes more difficult because pepper growers do not want to sell.
Global and domestic pepper markets in the week have fluctuated sharply due to worries about supply, especially after Vietnam's agricultural industry expected pepper exports in 2012 will decrease by about 30% of volume.
The main reason is that the 2012 crop will be severely reduced due to unfavorable weather, although last year the area of pepper growing in the whole country increased unexpectedly due to high prices. The number of production is estimated to decrease by 30-40% by the Vietnam Pepper Association surveyed in the key pepper growing areas at the end of 2011, making exporters really worried.
In the past week, although it was just traded at SMX (Singapore), black pepper price only increased by US $ 250, or 4.15%, to US $ 6,301 / ton for the March term and increased to 354. USD, or 5.57%, to USD 6,354 / ton for April term, a very strong increase. (see chart)
Pepper price on SMX in the first trading week – USD / ton (source: CafeF)
The price of black pepper at Ba Ria – Vung Tau market in the past week also increased by 5,000 VND, equivalent to 4.1%, to 127,000 VND / kg. Other domestic markets also saw a very hot increase, such as Dak Lak-Dak Nong increased 7,000 VND, to 122,000 VND / kg, Gia Lai increased 8,000 VND, to 124,000 VND / kg.
Many traders said that the increase in the price of pepper compared to the previous year is very strong, but the current collection of goods is more difficult because pepper growers do not want to sell. This is understandable because last year's pepper price peaked at approximately VND 160,000 / kg making early growers regret.
On NCDEX in Kochi-India, in the past week, March futures prices increased by a total of Rs 1,265, or 4.24%, to Rs 31,080 a quintal, equivalent to USD 6,310 / ton. The April term also increased by Rs 1,370, or 4.55%, to Rs 31,465 a quintal, equivalent to USD 6,388 / ton, a stronger increase. Particularly, spot price of pepper increased only Rs 842, or 2.73%, to Rs 31,664 / quintal, equivalent to USD 6,429 / ton.
Pepper prices for export of all countries also increased. Indian pepper of the special type MG1 went to Europe for 6,700 USD / ton and to the US for 7,000 USD / ton (C&F), an increase of 250 USD. Brazilian grade B1 grade was offered at US $ 6,700 / ton and B2 grade was lower than US $ 100 / ton, up US $ 350. Vietnam black pepper grade 500 Gr / l-FAQ was offered at 6,300 USD / ton and 550 Gr / l-FAQ grade was offered at 6,600 USD / ton, (FOB), increasing by 300-350 USD.
It is known that international shipping lines have announced their rate increases since the beginning of this March, in order to restore the deepened freight rates since 2008. The increase in freight rates will cause exporters. It is difficult for Vietnam because the import and export goods of Vietnam have long relied on foreign shipping lines.
It is expected that domestic pepper prices will remain high.
English
Source TTVN / CafeF
Source link
