At the end of the week, the futures market continued to witness The struggle between bulls and bears. Speculators did not rely on fundamentals to support action. As a result, the market was highly volatile with prices moving up and down in an arbitrary and imagined way by speculators.
One of the current trends in the futures market is the conjecture that the shortage of pepper being reflected on futures has been kept low in recent days. .
The new shipment delivered is no longer available to choose. Last week, the weather conditions in many areas were harvesting unfavorably.
Most of the pepper comes from Pathanamthitta, Kollam and Thiruvananthapuram districts, which can be of inferior quality compared to high price pepper.
During the Pongal festival, there were some improvements for new arrivals coming to the futures market. However, demand from Tamil Nadu after the holidays is quite high. The shipping lines in the domestic market are almost empty. Therefore, demand from these areas is strong.
The rupee has strengthened against the US dollar and rising prices have pushed Indian parity on the international market significantly. Therefore, the delivery price in January and February is about 7,000 USD / ton, the price cannot compete with other sources.
However, March delivery prices were competitive at $ 6,750 / ton. But exporters are said not to be in a position to force real deliveries amid fluctuating prices. While delivered in January 8,100 USD / ton and in February about 7,100 USD / ton.
Meanwhile, the Tamil Nadu market has been reopened after the Pongal holiday season, agents there are actively shipping at high prices. They are even willing to buy directly from good quality pepper growers for up to Rs 400 a kg.
This phenomenon has forced the futures market. On Saturday, about 20-25 tons of new pepper were traded at Rs 380, 390 and 400 Rs depending on quality, density and production area. Local pepper traders bought this stock.
In the previous week, the February contract soared while the coming months saw a decline. February increased by Rs 1,490 to Rs 37,470 / quintal (USD 6,963 / ton), while in March and April the price decreased by Rs 25 and Rs 360 to Rs 34,740 / quintal (equivalent to USD 6,456 / ton) and Rs 33,955 / quintal (equivalent to 6,310 USD / ton). (1 USD = 53.8132 Rupees)
Revenues fall
Total turnover dropped by 792 tonnes to close at 11,417 tonnes. Total open interest dropped by 123 tonnes to 3,321 tonnes.
On strong demand in the context of limited supply last week, the spot price increased by Rs 800 to close on Saturday at Rs 38,500 a quintal ($ 7,154 USD / ton) for un-classified and Rs 40,000 a quintal. (equivalent to 7,433 USD / ton) MG1 type.
Source Business Line / Giacaphe.vn
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