Last week, the Indian pepper market witnessed a downward trend, and therefore the effort of investors to pull down prices seems to have brought positive results. The market has fallen as domestic demand is high and supply is tight.
Pepper available on site is still very rare. Meanwhile, thousands of tons of pepper were kept in storage with no signs of being released in the near future.
On the exchange, the February contract was nearing maturity. Many people are worried about how they will receive the pepper when they choose to ship, “they may be given a cheaper price when the value is the default,” the market source said.
Goods coming from the main markets are still very few. On Saturday, January 15, 15 tons of new pepper was delivered and were traded at Rs 395 / kg and 405 Rs.
Most of the pepper is now sourced from federal dealers in Tamil Nadu district, bought in cash and purchased directly from farmers and from early market agents in Pathanamthitta district at forward market prices. Federal agents are based on Wayanad district as the basis for this transaction, while large quantities of low-density consumption below 500 GL with over 20% moisture are purchased by dealers from Jharkhand and Bihar at Rs 370 / kg. , confirmed sources. Large quantities of low-density pepper from Pulpally and Sultan Bathery of Wayanad district are also being sold at Rs 370 a kg.
Although some pepper was sent to the northern Indian market, the shipping was almost empty without seeing any products. At this time, good quality pepper is said to be very limited.
As such, the current supply and demand are still inappropriate and any increase will only be made when the expected arrival or thousands of tons of pepper in the warehouse are released.
Last week, spot and spot deals were limited. People try to buy but do not receive the goods. All transactions focus on March delivery.
On NCDEX, all trading contracts in the week decreased. February, March and April decreased by Rs 130, Rs 1245 and Rs 1040 respectively to close at Rs 38,730 a quintal, Rs 35,690 a quintal and Rs 34,595 a quintal (equivalent to $ 7,227 per tonne, $ 6,659 per ton and 6,455 USD / ton). (1 USD = 53.5939 Rupees)
Last week, total turnover dropped by 3,363 tonnes to close at 7,766 tonnes. Total open interest increased by 131 tonnes.
Spot prices, on Saturday 9/1 at the end of the week, decreased by Rs 400 to Rs 39,500 / quintal (equivalent to USD 7,370 / ton) for un-graded and Rs 41,000 / quintal (USD 7,650 / ton) for MG1 type. Although the purchasing power is good.
Indian parity on the international market is 8,000 USD / ton (c & f) for fast delivery. while February deliveries were US $ 7,600 / ton (c & f) and US $ 7,000 / ton (c & f) for March delivery.
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