Price of pepper futures continued to weaken on Monday 18/6. At the moment, the price of Indian pepper in the international market is too high, making the export of this spice reduced.
By the end of June, the downward pressure on prices will come from the new pepper market from Indonesia and Brazil as the two countries enter to harvest new crops.
Compared to prices from other sources in the world market, Indian pepper prices are still higher than US $ 300-400 / ton. This has caused the selling force to decline recently, a spice trader of this country commented.
“Demand for Indian pepper is very weak both in the domestic market and for export as prices are higher than other origins,” said Chowda Reddy, an analyst at JRG Wealth Management.
According to Reddy, if the July futures contract breaks the 39,500 support level, it could drop to Rs 39,100 a quintal in the next one or two days.
In Kochi market – India, today's price of pepper decreased by Rs 316 to Rs 39,379 / quintal, equivalent to 7,154 USD / ton. (1 USD = 55.0431 Rupees)
However, limited supply and declining stocks in India are expected to be the factors preventing pepper prices from plummeting.
Indian industry officials said the country's pepper production would reach 43,000 to 45,000 tons this year, compared with 49,000 tons last year.
According to the May report of Customs, India imported 884 tons of pepper from Vietnam with a turnover of US $ 5.87 million, bringing the import volume from our country in the first 5 months to 4,174 tons of pepper. type, reaching a turnover of USD 27.57 million. The average import price in May reached US $ 6,642 / ton, up 2.18% from the previous month's import price.
Giatieu.com
Follow Reuters
Source link
