Market sources said that a significant volume of new-crop black pepper from Cambodia market is flowing into our country in the past few days, causing domestic pepper prices to slow down.
Read more: >> World pepper prices are stable, Vietnamese pepper prices increase in both domestic and export markets
Buying pepper in Dong Nai
This morning, the price of black pepper in key production areas decreased by 2,000 VND/kg due to weak buying demand from exporters and processors of white pepper. The price of black pepper in the domestic market currently fluctuates at 58,000 – 60,000 VND/kg, down 4,000 VND/kg from the peak of this year’s pepper crop 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 volume of new crop of black pepper from Cambodia is flowing into our country in the past few days. Yesterday, domestic pepper prices slowed down.
Besides, the demand for white pepper from exporters dropped sharply, forcing many white pepper processing facilities in Dong Nai and Ba Ria – Vung Tau to temporarily close and stop purchasing and processing within 2 weeks, causing the price of black pepper to fall. domestic bucket reverse decline.
At the same time, the buying power of retail speculators in the domestic market almost completely decreased when the price of black pepper rebounded to 60,000 VND/kg about 3 weeks ago, when pepper farmers were still earning. final stage plan.
Meanwhile, yesterday, Monday, May 7, the spot price of pepper in India was stable at Rs 33,500/quintal (equivalent to USD 5,008/ton) for bucket pepper and Rs 35,500/quintal (equivalent to Rs 35,500/quintal) equivalent to USD 5,307/ton) for selected pepper, down by 38.5% over the same period last year (exchange rate of USD 1 = Rs 66,8924).
On the contrary, although it has just restarted trading of pepper futures on the NCDEX since July 20, 2017, it may not be attractive enough because the institutions are somewhat limited in the trading scope, so the volume Transactions are becoming less and less, not enough to cover operating costs, so pepper futures in India have not been traded since April 20. Although there has been no information from the exchange about this, it is possible that due to many trading sessions without any buying/selling volume, the exchange did not release data at the end of the session.
According to the Pepper Growers Association in the state of Karnataka, now the largest pepper growing state in India, the pepper harvest this year has just been completed with a total production of about 55,000 tons in India. With this output, it is certain that the Indian pepper spice industry must rely on imported pepper in the form of processing and re-export, with a total 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 from Vietnam. The rest come from neighboring countries and from members of the IPC. Meanwhile, India exported 18,270 tons of pepper in 2017 which means adding more than 12,000 tons to domestic demand.
According to the trade report of the World Pepper Association (IPC) last week, the price of black pepper in India increased slightly, while the Cambodian black pepper grade 550 Gr was offered at $3,230 per tonne and the Madagascar black pepper grade 560 Gr was offered. price 3,260 USD/ton. At other sources, the supply remained stable.
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