Over the past week, the Indian pepper market continued to witness fierce competition among speculators, in which price speculators are taking control of the market. As a result, Malabar pepper prices have dropped significantly in both domestic and international markets.
The market is shrinking as buyers only buy just enough and hope prices will fall when new launches are expected, around mid-December. While buyers wait, sellers stay away from the market decline. Spot pepper is currently not available in Kerala and Karnataka, trading sources said.
The physical market saw no transactions because no shipments were delivered.
However, green pepper is currently being harvested in Pathanamthitta, Kollam and Thiruvananthapuram districts in Kerala state to serve the dehydrated and desalinated green pepper processing industry. Green pepper is sold at Rs 115-120 / kg.
In the Pattiveeran Patti area of Tamil Nadu, green pepper is also being harvested. Farmers there said that without the northeast monsoon rains they would have had a second green pepper crop. They think that if the pepper is harvested early, it will help to reduce the damage to the tree and for the next crop.
About half of this month, there were no shipments coming from the main markets, some investors have bought back their December contracts and liquidated their stocks on the spot market. They sold very large quantities of 500 – 525 Gr / l at Rs 5 less than December contract prices. Local buyers from Madhya Pradesh, Bihar, Jharkhand, and Delhi all covered the price.
All contracts fell this week. The contracts of December, February and March decreased respectively Rs 525, Rs 695 and Rs 695 to Rs 37,830 / quintal, Rs 34,395 / quintal and Rs 33,790 / quintal (equivalent to USD 6,891 / ton, USD 6,265 / ton and 6,155 USD / ton). (1 USD = 54,8970 Rupees)
Total turnover for the week decreased by 7,157 tonnes to 23,819 tonnes. Total open interest dropped by 70 tonnes to 7,865 tonnes.
Spot prices in the past week decreased by Rs 500 / quintal and closed the week at Rs 37,100 / quintal (equivalent to US $ 6,758 / ton) for pepper and 38,600 Rs / quintal (equivalent to US $ 7,031 / ton) for pepper. choose MG1.
While the bears are looking to pull the market down, the bears are holding around 6,000 tonnes of pepper which is expected to expire on January 5, making it very difficult to hold the stocks. Therefore they are accused of seeking every trick to sell their products because holding has become a financial burden for them.
The hedge houses are currently stuck between the activities of both speculators.
Source Business Line / Giacaphe.vn
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