Over the past week, the forward pepper market has seen bulls continue to liquidate. It is known that they are holding a huge amount of goods.
The December contract will expire on December 20 and the number of delivered goods will expire on January 5, so the bulls have tried their best to liquidate out of fear of heavy financial losses, According to market sources.
There does not appear to be a buyer due to the costs associated with recycling. At the same time, the January contract is not listed on the exchange because it is said to be a weak trading month. The price of February contract increased while December contract increased only slightly.
Demand for Indian domestic pepper began to increase day by day. New arrivals are delivered no longer as before.
On the spot market, on Friday, about 15 tons of new pepper has been delivered to different places at a price of 369 – 375 Rs / kg depending on the volume, humidity, and production area.
Contract purchases also went well in the states of Bihar, Uttar Pradesh, Delhi, Mumbai, Gujarat, Madhya Pradesh, due to increased consumer demand for winter, festive and wedding seasons. However, the amount of goods made is still very scarce.
After a week of trading, on the NCDEX at Kochi, the contract in December increased by Rs 80 and closed at Rs 39,080 a quintal ($ 7,068 USD / ton). February and March contracts increased by Rs 525 and Rs 640 respectively to close at Rs 34,590 a quintal and Rs 34,425 a quintal (equivalent to $ 6,256 USD / ton and 6,226 USD / ton). (1 USD = Rs 55.2926)
Total turnover of the week plummeted 8,647 tons to 8,004 tons. Total open interest dropped by 1,257 tonnes to 4,176 tonnes.
Spot prices remained unchanged at Rs 37,200 / quintal (US $ 6,728 / ton) for all kinds of buckets and Rs 38,700 / quintal (US $ 6,999 / ton) for selected grades due to limited activity. preparations.
On the international market, Indian parity is priced at US $ 7,450 per tonne (c & f) for the European market and US $ 7,750 per tonne (c & f) for the US market. This price is still higher than the price from other sources. The selection of Malabar with its high specificity seems to have lost foreign buyers due to its price being too high to compete in the world market.
Buyers, including those who favor a plus price for Malabar pepper, appear to have turned to other sources, mainly Lampong Asta (from Indonesia).
The difference between the price of Malabar pepper and pepper from other origins is still above 1,000 USD / ton for most days of the week.
Source Business Line / Giacaphe.vn
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