The reason is that the report of the International Pepper Community (IPC) shows that the situation of pepper production and consumption in the world is not as stressful as the previous forecasts.
The Indian pepper market has recently declined continuously because the end-of-season supplies are no longer abundant and the export demand is also weak, as the price of Indian pepper is higher than all prices of origins. In other countries, the price of pepper has decreased.
Ending yesterday's session, Monday 12/11, pepper futures prices on NCDEX India continued to decline. Compared to the previous Monday, the terms of November, December and February 2013 decreased by Rs 920, Rs 1,415 and Rs 1,160 respectively to Rs 41,615, Rs 40,890 and Rs 36,390, respectively. equivalent to USD 7,539 / ton, USD 7,407 / ton and USD 6,592 / ton (USD 1 = Rs 55,2222). Particularly, the term of January 2013 temporarily did not go to the floor because the trading volume of the previous year was insignificant.
Spot prices in tandem with the futures market trend fell by Rs 100 to Rs 39,200 / quintal (US $ 7,101 / ton) for pepper and Rs 40,700 / quintal (US $ 7,373 / ton) for selected grades. MG1. Indian special pepper on the international market was US $ 7,800 per tonne (C&F) in Europe and 8,100 US dollars per tonne (C&F) for the United States. Although it fell sharply, it was still much higher than other countries' pepper prices.
The reason for the continuous price decrease in the past half month is due to the report of the International Pepper Community (IPC) at the 40th Annual Meeting held in Colombo, the capital of the island nation of Sri Lanka. and pepper consumption in the world is not as stressful as previously forecast.
NCDEX reports and complaints from the Business Association to the Indian government and the Commission on Future Markets (FMC) suggest that there are groups seeking to manipulate prices on futures exchanges, pushing prices up. skyrocketing, making Indian pepper no longer able to compete in the world market when it is $ 2,000 / ton higher than the prices of other producing countries, investors also flinched to listen, wait …
The price reduction is due to the Indian market facing a harvest that will start in mid-December, which farmers and merchants have affirmed “an unprecedented harvest”, and the IPC has given a specific figure of 55,000. tons, an increase of nearly 30% compared to 2012.
At the same time, due to the low exchange rate of the Rupee, farmers aggressively sold as well as planned to increase the area of pepper with the support of the government and pepper associations in the states, so the price of pepper became calm. .
According to IPC, total global pepper production in 2012 reached 336,780 tons and the number for export is 327,090 tons. While the forecast was made in the previous Bali Indonesia conference, global pepper production is estimated at 320,000 tons, up from 298,000 tons in 2011 and the world continues to lack about 52,000 tons of pepper. The main reason for this increase is due to the good harvest of Vietnam and Indonesia, in which Vietnam will increase 10% to 110,000 tons and Indonesia will increase 24% to 35,000 tons.
However, the figures reported at this conference show that Indonesia's pepper output in 2012 was 63,000 tons with exportable balance of 62,614 tons. Indian traders say the difference between the given figures is too large and they find it very difficult to accept this data.
However, global price trends in 2013 remained stable due to IPC's forecast for both Vietnam and Brazil's pepper output to be lower, these two big producers will have a poorer harvest due to the weather. and pests.
IPC also forecasts that Vietnam's export in 2013 is estimated at 100,000 tons, including 10,000 tons of white pepper and 90,000 tons of black pepper, continuing to hold the No. 1 position in the world.
This morning Tuesday 13/11, the price of black pepper buckets in the Southeast provinces cost 122-123 thousand VND / kg and the Central Highlands provinces cost 119-120 thousand VND / kg.
Exported black pepper was offered at grade 500 Gr / l-FAQ at USD 6,200-6,250 / ton and 550 Gr / l-FAQ at USD 6,450-6,500 / ton, (FOB); While white pepper grade 630 Gr / l-FAQ offered at US $ 9,200-9,300 per tonne (FOB), the cargo disembarked very slowly.
Domestic pepper prices are also currently in the downtrend, although the decline is relatively slow, while India's beginning to enter the Diwali festival may cause further price declines.
Source English (TTVN / CafeF)
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