Key countries are harvesting, but the newly harvested output is still not strong enough to cause prices to drop.
After a slight drop at the beginning of the week, pepper futures on Kochi-India had 2 consecutive gaining sessions. In which, on July 13, pepper price for July term increased by Rs 89 to Rs 26,988/quintal, equivalent to USD 6,005/ton; August futures increased Rs 81 to Rs 27,479/quintal, equivalent to USD 6,115/ton; September futures increased by Rs 71 to Rs 27,881/quintal, equivalent to USD 6,204/ton; The spot price of pepper in buckets is at Rs 26,400/quintal equivalent to USD 5,875/ton.
Domestically, the price of pepper in buckets increased to 110,000 VND/kg in the afternoon of July 14, after remaining stable at 105-106,000 VND/kg during the past half-month. This price is said to be of the buying agent to pick up when the pepper price in the futures market has shown signs of increasing in the past few days.
Currently, the main pepper producing countries such as Malaysia, Indonesia and Brazil are in the harvest season, but the price of pepper in the world futures market is almost unchanged. According to the International Pepper Association (IPC) estimates, in 2011, Malaysia has 13,000 hectares with 25,500 tons of pepper, Indonesia has 170,000 hectares, 37,500 tons of pepper of all kinds, Brazil has 45,000 hectares and 35,500 tons of pepper of all kinds. .
For agricultural products, the time to harvest the crop is usually the time when the price drops or when spending less, the price also decreases. However, in the past half-month, the price fluctuation range in the world pepper futures market was very small, almost insignificant. This shows that although the main producing countries are in the harvest season, the newly harvested output is not enough to affect the market. This means that the supply of pepper has not yet satisfied the growing world demand. Therefore, traders believe that the world pepper market towards the end of the year contains unexpected developments and the upward price trend is still the main trend of the second half of this year.
Vietnam’s export black pepper is being offered for sale in 500 Gr/l-Asta for $5,950/ton, 550 Gr/l-Asta for $6,350/ton and 580Gr/l-Asta for $6,750, while 500 Gr/l-FAQ priced at $5,600/ton and 550 Gr/l-FAQ priced at $5,950/ton (FOB), an increase of $50 from last week due to increased demand.
Indian pepper special grade MG1 returned to 6,400 USD/ton (C&F), a slight decrease due to the appreciation of the Rupee exchange rate against the USD.
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