A sharp increase in purchasing power in India has pushed up the price of pepper in this market, while in Vietnam and the Singapore exchange, both sellers and buyers are absent.
Pepper price of futures on NCDEX in India continued to rise at a high level while pepper on SMX remained the opposite trend.
Ending the last trading session on Saturday, July 14, futures price on NCDEX in Kochi Indian market continued to stand at a high level. July delivery term was Rs 42,730 / quintal equivalent to USD 7,789 / ton, delivered in August was Rs 43,240 / quintal equivalent to USD 7,882 / ton and in September delivery was Rs 43,520 / quintal equivalent to USD 7,933 / ton. (1 USD = 54.8625 lakhs).
Spot pepper prices in tandem with the price trend of the futures market increased to Rs 39,900, equivalent to USD 7,273 / ton for pint and Rs 41,400 / quintal, equivalent to USD 7,546 / ton for MG1 selected, increased. 180-200 USD / ton compared to the beginning of the month. Although the Rupee exchange rate has rebounded, high demand continues to drive up domestic Indian pepper prices.
Special price of MG1 type of India on the international market is about USD 7,850-7,900 / ton (C&F) for goods to Europe and about USD 8,150-8,200 / ton (C&F) for goods to the US, keeping the difference. higher than the export price of other countries.
Meanwhile, after a long period of lack of customers, the futures price on Singapore Mercantile Exchange (SMX) this week stood at 6,160 USD / ton for July delivery and 5,967 USD / ton for August term, still far from the futures price in India.
According to Lo Kun Seng, executive director of a large pepper exporting company of Malaysia, in the second half of the year, the pepper market will cool down when major pepper producing countries such as Indonesia, Brazil surrender, farmers and traders of pepper producing countries are not in a hurry to sell at current prices.
“They are holding significant quantities of goods and are waiting for prices to rise. The demand of import markets is still high. The public debt crisis of the region that uses the common currency (Eurozone) also has little impact on world pepper prices. ” Mr. Lo said.
According to the seasonal calendar, Indonesia has now passed the second month of a new harvest lasting about four months, while Brazil will also have a new crop to enter the market expected between mid-October or November. .
While in Vietnam, the world's No. 1 pepper producer and exporter, accounts for more than a third of global pepper production, pepper trading in the domestic market is currently quiet. Some export companies temporarily do not eat goods and many agents also stop buying because “the company is short of money, late payment” that makes farmers also reluctant to sell despite the domestic price of pepper being reduced. lightly, according to traders said.
This morning July 15, the price of black pepper in Ba Ria – Vung Tau was 124-125 thousand VND / kg, Binh Phuoc 123 thousand VND / kg and the Central Highlands provinces 121-122 thousand VND / kg, down 1-2 thousand VND compared to the beginning of the month.
Vietnam's export price of black pepper grade 500g Gr / l-FAQ at 6,200-6,250 USD / ton and 550 Gr / l-FAQ grade at 6,500-6,550 USD / ton, while white pepper grade 630Gr / l-FAQ offered 9,350 -9,400 USD / ton and DW630Gr / l type at 9,700-9,750 USD / ton, (FOB), down by 100 USD.
According to Customs statistics, June export reached 9,522 tons of pepper with a turnover of 65.12 million USD, down 22.1% in volume and 22.4% in value over the previous month, bringing the number of export volume in the first 6 months to 69,163 tons of pepper of all kinds with a turnover of 471.3 million USD, although down 0.7% in volume but up 25.5% in value over the same period last year. Average export price in June reached 6,839 USD / ton, still high.
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Source TTVN / CafeF
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