This price is much higher than the average export price of black pepper at USD 5,637/ton in 2011, opening a bright prospect for Vietnam’s pepper industry.
The Singapore Commodity Exchange (SMX) started trading black pepper futures yesterday, February 10, which is also the first agricultural product to be traded on this exchange.
Accordingly, the price of black pepper for delivery in March closed the first session at $6,050/ton. During the session, prices ranged from $5,950 to $6,070 per ton, with 125 contracts successfully executed.
Previously, SMX announced that the source of goods traded on this floor would be from a bonded warehouse in Vietnam – the world’s largest pepper producer and exporter. In addition, the pepper contracts on this exchange can provide a benchmark price for the world’s black pepper if liquidity is good.
Currently, Vietnamese pepper accounts for 43% of the world pepper market. Indonesia, Malaysia, Brazil, India, and Sri Lanka together account for the remaining market share.
Black pepper traded on the Singapore Exchange, the world’s first futures exchange, is a standard 550 gr/liter black pepper, a popular pepper in the Asian market.
According to the Vietnam Pepper Association (VPA), in 2011 Vietnam exported 99,918 tons of black pepper, reaching an average price of 5,637 USD/ton, up 2,136 USD compared to the average price in 2010.
Thus, the starting price on SMX is relatively high, opening a bright prospect for Vietnam’s pepper industry.
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