Pepper futures prices remained hot in the domestic market while foreign-origin prices were firmer last week on supply pressure amid some positive demand trends.
Last week, in the domestic market, the amount of new goods continued to arrive but very little.
The agent in Tamil Nadu has been covering the prices directly with growers in the Idukki and Wayanad districts of Kerala in cash and executing on the premises based on the forward market price. Some mills are also buying farm-grade pepper and preliminarily processing it for sale, market sources said. Dealers and farmers in Karnataka state also did not sell even though they also raised prices.
IPSTA has been allowed to raise the daily volatility limit from Rs 500 to Rs 1,000 per quintal.
For the week, August, September and October contracts spiked to Rs 1,144, Rs 1,538 and Rs 1,340, respectively, at Rs 41,750 per quintal, Rs 42,050 per quintal and Rs 41,850 per quintal (equivalent to $7,071 per ton). $7,121/ton and $7,087/ton). ( 1 USD = 59.0478 Rupees )
Total sales increased 17 tons to 199 tons. Open interest dropped 16 tons, 83 tons. Spot prices increased by Rs 900 hot to close at Rs 38,900/quintal (equivalent to $6,588/ton) for bucket pepper and Rs 40,900/quintal ($6,927/ton) for selected pepper.
The Indian specialty in the international market is around $7,200/ton (c&f) for Europe and about $7,350/ton (c&f) for the US and still has a higher price than other origins.
Overseas Trends
According to a report from abroad, Vietnam has exported more than 85,000 tons of pepper from the beginning of the year to the end of June. The report from Indonesia recorded a drop of up to 20% this season. Supply from Indonesia is currently tight due to Islamic holidays and limited supply.
In Brazil, while exports have not yet begun, the market is solidified as there is already a lot of activity in the selection of pre-orders. Brazil’s crop production is expected to be similar to last year.
While pepper has been bound for the past few months, the current shortage is likely to put pressure on prices, the report said.
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