The pepper market continues to leave an impression that it is likely that the market is dominated by bulls and bears. “It seems that no one regulates the market,” the source alleges.
In fact, long position holders are controlling the market and pushing for December contracts as well as widening the gap between December and other active contracts.
They tightened the market and forced holders to buy back the December contract. As a result, the December contract increased significantly and closed at a much higher price than other contracts.
As holders of long positions have sharply decreased their positions, February and March contracts continue to decline in recent days. Therefore, the difference between contracts December and February last week amounted to 6,350 rupees a quintal. In addition, lower pepper prices are taking place as sellers are forced to do so to exit the market, market sources said. Business Line.
Along with the phenomenon of investors acquiring contracts in December and liquidating their pepper in the market, agents across the district have purchased these liquidated goods due to the supply of goods in most of the domestic market. have been exhausted.
Domestic demand is expected to increase in the coming days due to winter and wedding season. In addition, consumer demand is also increasing.
No shipments were delivered from major markets. Sabarimala pilgrims are believed to be buying small quantities of pepper from Pathanamthitta, Kollam, and Idukki districts. According to dealers at Parakode (Pathanamthitta) and Punalur (Kollam), an estimated 5 to 7 tons of pepper is traded every day and is expected to increase as the number of pilgrims increases.
In addition, the increasing number of tourists also supports the retail business of black pepper in production areas.
Indian parity price was similar to December delivery price and remained at around USD 7,400 per tonne (c & f) for European market and USD 7,700 per tonne (c & f) for US market. However, at current prices, February and March contracts are more competitive at US $ 6,600 – US $ 6,700 / ton (c & f) compared to prices from other origins in the world market.
During the week, on the NCDEX, the contract in December increased by Rs 1,180 and closed the week at Rs 38,980 a quintal, while the February contract decreased by Rs 330 to Rs 34,065 / quintal and the March contract dropped by Rs 5 to VND 33,785. Rupee / quintal.
Total turnover for the week decreased by 7,168 tonnes to 16,651 tonnes. Total open interest dropped by 2,433 tonnes to 5,433 tonnes.
At the end of the week, the spot price was at the same time with the trend in the futures market and due to the limited trading activities, it increased by Rs 100 a quintal, closing at Rs 37,200 per quintal (equivalent to US $ 6,794 / ton). ) bucket pepper and Rs 38,700 a quintal (US $ 7,067 / ton) for MG1 pepper. (1 USD = 54.7577 Rupees)
World situation
Including the number of goods from 2011, imports and domestic consumption in 2012, about 85,750 tons will be converted into goods for 2013. The volume is relatively small when compared with the amount of goods at the beginning of the year at 90,585. tons, according to the International Pepper Community (IPC).
Mr. S. Kannan, IPC Executive Director, said: “The amount of goods transferred to 2013 is expected to meet export demand only before new products of the next crop will be put on the market. According to this situation, pepper prices are expected to remain high in the coming months.
Source Business Line / Giacaphe.vn
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