The price of pepper futures continued to weaken in the trading session on Monday, June 18. Currently, the price of Indian pepper in the international market is too high, causing the export of this spice to decrease.
At the end of this June, downward pressure will come from the pepper market receiving new supply from Indonesia and Brazil when these two countries enter the harvest of the new crop.
Compared to the price of pepper from other suppliers in the world market, the price of Indian pepper is still higher than 300-400 USD/ton. This has caused the selling force to decrease recently, a spice trader of this country commented.
“Demand for Indian pepper is very weak both in the domestic and export markets because of the higher prices than other origins,” said Chowda Reddy, analyst at JRG Wealth Management.
According to Mr. Reddy, if the July futures contract breaks the 39,500 support level, it can drop to Rs 39,100 per quintal in the next day or two.
In the Kochi market – India, the spot price of pepper today decreased by Rs 316 to Rs 39,379/quintal, equivalent to US$ 7,154/ton. ( 1 USD = 55.0431 Rupees )
However, limited supply and declining stocks in India are expected to be the factors that prevent pepper prices from falling deeply.
The Indian industry official said that the country’s pepper production will reach 43,000-45,000 tons this year, compared with 49,000 tons last year.
According to the May report of the Customs, India imported 884 tons of pepper from Vietnam with a turnover of 5.87 million USD, bringing the import volume from our country in the first 5 months of the year to 4,174 tons of pepper. types, reaching a turnover of 27.57 million USD. The average import price in May reached 6,642 USD/ton, up 2.18% compared to the previous month’s import price.
Giatieu.com
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