(07/10) – Prices on both national commodity exchanges and regional commodity exchanges show a downward trend while prices in the spot market increase due to strong demand.
Hedged traders do not enter the market while everyday traders remain active. As a result, futures market prices fell. At the same time, in international markets, prices tend to be firmer in all origins, except for Brazil. Sources from Indonesia have been tightened due to declining production. The same situation occurs in Vietnam. In India there is also a pressure on supply. With this scenario, the world pepper market is likely to maintain high stability for the rest of the year, according to S. Kannan, Executive Director of the International Pepper Community (IPC). Based in Jakarta, Indonesia.
According to S. Kannan, black pepper production in Lampung this year decreased 15,000 tons from about 55,000 tons in 2012. In Brazil, this year's production is estimated to be normal. In Vietnam, current inventories are estimated to be very limited. Of the 118,000 tons harvested this year, about 100,000 tons were exported from January to August.
It is known that Lampung's harvest is almost exhausted and Brazil has no selling pressure. If the weather is more favorable, the production in 2014 may be better than in 2013. Therefore farmers are advised not to keep much inventory this year, he said.
From the recent supply and demand scenario and tight supply, Mr. Kannan said that there could be a shortage of about 6,000 – 9,000 tons of pepper in the last quarter of this year.
In addition, importing countries have maintained a speculation on inventories and therefore, there are no inventories in consuming countries. “This situation will be unstable if any increase in demand will cause prices to soar.”
Indian parity remained competitive early last week thanks to a stronger rupee against the dollar. Agents from Bihar and Jharkhand began to move towards Kerala and were operating in markets in Kannur, Kasargode, Malappuram, etc. They directly purchased pepper of lower weight than that from main markets of Karnataka at Rs 401 – 405.
The diversion of buyers gives Karnataka to Kerala the impression that the inventory in Karnataka is exhausted.
Last week, NMCE futures contracts fell by Rs 390 and Rs 100 to Rs 43,150 per quintal and Rs 43,450 per quintal (equivalent to US $ 7,029 / ton and US $ 7,078 / ton). (1 USD = 61.3873 Rupee)
Turnover decreased by 112 tons to 60 tons at the weekend. Open interest dropped by 4 tonnes to 19 tonnes.
On IPSTA, October and November contracts fell by Rs 35 and Rs 235, respectively, to close at Rs 43,375 / quintal and Rs 43,275 / quintal (equivalent to US $ 7,066 / ton and US $ 7,050 / ton). Revenue on this floor showed a sharp increase from 256 tons last week to close at 356 tons at the end of the week.
Spot prices increased by Rs 300 to close at Rs 40,400 a quintal (US $ 6,581 per ton) for pint and Rs 42,400 a quintal (US $ 6,907 per ton) for the selected grade, on Saturday due to the increase. Buy good support. Indian parity in the international market is around USD 7,350 per tonne (c & f) for Europe and USD 7,600 per tonne (c & f) for the United States.
Source Giacaphe.vn
Source link
