This morning, the price of black pepper at major production areas decreased by VND 2,000 / kg due to weak buying demand of both exporters and processors. The price of black pepper in the domestic market currently fluctuated between 58,000 and 60,000 VND / kg, down 4,000 VND / kg from the peak of this year's pepper about 10 days ago.
The domestic pepper market often lacks buying power from exporters in the early days of the month, while market sources say a significant amount of black pepper from the Cambodian market is flowing strongly into our country in the first few months. The last day has made domestic pepper prices slow down.
In addition, the decline in demand for white pepper from exporters has forced many white pepper processing establishments in Dong Nai and Ba Ria – Vung Tau to temporarily close and stop processing purchases within 2 weeks, causing black pepper prices. Domestic buckets reversed declines.
At the same time, the buying power of small speculators in the domestic market has been almost completely reduced when the black pepper price rebounded to 60,000 VND / kg about 3 weeks ago, while the pepper farmers were still collecting. final stage planning.
Meanwhile, on Monday 7/5, spot price of pepper in India was stable at Rs 33,500 / quintal (US $ 5,008 / ton) for pint and 35,500 Rs / quintal. equivalent to USD 5,307 / ton) for the selected type, down by 38.5% compared to the same period last year 66.8924
On the contrary, although it has just restarted trading of forward pepper on NCDEX since July 20, 2017, it is probably still not attractive enough because institutions have limited the scope of trade. Transactions have become less and less, not fully covering operating costs, so Indian term pepper has no longer been traded since April 20. Although there is no information from the floor about this, but it is possible that due to many trading sessions without any buying / selling volume, the floor also did not provide report data at the end of the session.
According to the Pepper Growers Association in Karnataka state, which has now become India's largest pepper growing state, this year's pepper harvest has also been completed with a total production of about 55,000 tons across India. With this output, the Indian pepper spice industry must rely on imported pepper in the form of processing and re-exporting, with an overall demand of more than 80,000 tons.
According to India's Trade Statistics, out of 30,400 tons of pepper imported in 2017, about 60% were pepper from Vietnam. The remainder comes 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 to domestic demand.
According to last week's World Trade Association (IPC) trade report, black pepper prices in India increased slightly, while Cambodian black grade 550 Gr was quoted at US $ 3,230 / ton and Madagascar black grade 560 Gr offered. price 3,260 USD / ton. At other supplies remained stable.
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