(18/11) – Pepper prices in the world market remain more stable due to tight supply, although much lower than Indian pepper prices.
According to the International Pepper Community (IPC) statistics, at the recently concluded Annual Meeting in Kuching, Malaysia, it is expected that in 2014 the global shortage will be 6,300 tons of pepper compared to the estimated production of the year. two thousand and thirteen.
This phenomenon has been reflected in the market in recent weeks. Pepper prices are now firmer in almost all origins.
However, in Brazil, where pepper is being harvested, prices are still lower than in other producing countries.
Strong domestic demand coupled with tight availability in India has pushed prices here to unprecedented levels. Spot prices hit a historical record of over Rs 500 a kg. Some people even bought pepper at a price of over Rs 500. The amount of available high consumption is currently scarce, market sources said Business Line.
As pepper prices rise daily, those holding stocks leave the market. Recently saw more buyers than sellers.
Industry customers who do not stock inventories and buy consumer goods in the hope that prices will fall are the most affected. Now with no other option, they have to buy at the current price for whatever item is available.
There is a need for the plants to operate to ensure their presence in the industry market, as buyers may no longer be able to delay their purchases, they said. At the same time, these days strong domestic demand is due to the buying season to cater for the winter demand.
Total domestic demand in 2013 is estimated at 47,500 tons. Imports this year are forecast at 12,750 tons. Currency fluctuations and high pepper prices in other origins have prevented imports.
According to trade, it is not realistic to publish inventory data according to IPC statistics. As the supply this year is tight and therefore when much higher prices dominate the market, the opportunity to hold back is zero. Therefore, it is impossible to expect a high volume of inventories to carry over to 2014 as expected.
If the predictions of the producing countries come true, it is likely that the supply will be tightened in 2014 and therefore it is expected that prices will remain stable and stable next year.
Indian production in 2014 is forecast at 45,000 tons compared with 58,000 tons estimated in 2013, recording a decrease of 13,000 tons. Inventory of 2013 carryover is expected to be about 9,760 tons. As such, the availability of goods on the domestic market may be tightened in 2014.
On futures markets, both nationally and regionally, prices skyrocketed last week. On NMCE, December and January contracts increased by Rs 3,242 and Rs 1,547 to Rs 52,250 and Rs 51,831 / quintal (equivalent to US $ 8,313 / ton and US $ 8,247 / ton). (1 USD = 62.8496 Rupees)
Similarly at IPSTA, December and January contracts increased by Rs 3,014 and Rs 3,932 to Rs 51,014 and Rs 51,932 (USD 8,117 / ton and 8,263 USD / ton, respectively).
Spot prices soared by Rs 1,900 to Rs 49,800 a quintal (US $ 7,924 per tonne) for pint and Rs 51,800 a quintal (US $ 8,242 per ton) for the selected type, thanks to strong demand in the context. Stock availability is still tight.
Prices of Indian special pepper on the international market were at 8,750 USD / ton (c & f) for Europe and 9,050 USD / ton (c & f) for the US.
Lampong Asta was quoted at US $ 8,425 per tonne (CIF), New York, while Brazilian Asta was reported firmer by sellers.
Source Giacaphe.vn
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