Pepper market last week was under the control of a bleak outlook created by many different factors and therefore all active contracts ended the week below the closing price. last weekend.
The reason for the downward trend may be that an estimated 6,000 tons of pepper will be released for the first time after a complaint in Indore Court filed for withdrawal. In addition, there was some selling pressure from the plains of Kerala state.
There is also a report that the supply in Vietnam market is easier, combined with the increasing demand of pepper from Sri Lanka for Indian importers, for a grade of 525 – 550 Gr / l.
While domestic demand, which has been met primarily by supplies from the state of Karnataka and the northern Kerala region, also slowed on expectations that prices will fall. All these factors have led to a downward trend of pepper prices over the past week.
Besides, agents in West Asia are also buying through their agents from the plains and high mountain regions.
The majority of pepper comes in a low density, high moisture content due to unfavorable weather conditions that dominate throughout the week. As a result, processing costs have risen to as high as Rs 40 per kg. Processing can only be done at factories with modern facilities.
Demand for pepper is high, especially for the high-grade varieties from the high mountain ranges of Idukki district in Kerala state and Tamil Nadu district, based on federal agents, which have been covered in cash and carried out at facility. Meanwhile, sellers in Idukki district's Rajkumari district are now thought to be interested in selling pepper at Rs 420 a kg. But, buyers are reluctant to buy because the market is in decline.
Most of the previous week, Indian pepper prices remained competitive in the international market. But, the high volatility in exchange rates has put exporters in a difficult situation that prevented them from fulfilling any commitments with foreign buyers.
At the end of the week, pepper from other sources is reported more firmly than at the beginning of the week, especially pepper from Vietnam is said to tend to be easier. From a price perspective, Vietnamese pepper is still the source of the cheapest price. While the Indonesian market is extremely meager with limited supply is essential.
On NMCE, October and November contracts dropped sharply by Rs 1,370 and Rs 962, respectively, to Rs 42,909 / quintal and Rs 43,465 / quintal (equivalent to USD 6,841 / ton and USD 6,929 / ton). (1 USD = 62.7273 Rupees)
Total open interest dropped by 3 tonnes to 33 tonnes. Total turnover increased by 60 tons to 186 tons.
Spot prices fell by Rs 600 to close at Rs 40,300 a quintal (equivalent to US $ 6,425 / ton) for the bucket type and Rs 42,300 / quintal (equivalent to US $ 6,743 / ton) for the selected type, due to limited activities. .
Indian parity in the international market fluctuated between US $ 7,100 and US $ 7,250 per tonne (c & f) for Europe and US $ 7,350 to US $ 7,500 a tonne (c & f) for the United States because of the exchange rate fluctuation of the Rupee compared to USD.
Source Giacaphe.vn
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