The reason is that Vietnam holds up to 40% of the world's export pepper.Closing the first session of the week was just the beginning of October, the price of pepper futures on the NCDEX in Kochi – India increased well thanks to the strong Rupee plus high demand.
October delivery increased by Rs 40 to Rs 43,435 a quintal, equivalent to USD 8,223 / ton and November delivery also increased by Rs 85 to Rs 43,120 per quintal, equivalent to USD 8,163 / ton (USD 1 = 52). , 8216 Rupees)
Spot prices also moved in tandem with the futures market, which increased by Rs 500 to Rs 40,100 a quintal, equivalent to US $ 7,592 per tonne for pepper and Rs 41,600 a quintal, or US $ 7,876 per tonne for selected grades, ie increase 450 USD.
Within 15 days, Indian pepper and spot price increased by approximately 7%, a very strong increase.
According to Indian pepper traders, the export prices of other pepper producing countries are showing signs of increase and the trend is likely to increase to reach 7,500 USD / ton, at the same time if the price of pepper is concentrated. the Indian strain also dropped to 7,500 USD / ton so the price in the world market could have a stable price meeting. Sources of goods in foreign markets have now completely exhausted, according to traders.
Meanwhile, pepper futures prices on Singapore Mercantile Exchange (SMX) after a few days of prosperity has returned to the weak, deserted trading trend. October delivery fell slightly to US $ 6,502 / ton and November delivery to US $ 6,469 / ton but no matching was found on both terms. It can be affirmed that SMX has not created an attraction for traders trading in pepper in Southeast Asia.
Market watchers say that it seems that international pepper speculators want to use the SMX floor to control Vietnam's export prices – the market is holding more than 40% of global pepper exports.
Vietnam's export price of grade 500 Gr / l-FAQ was offered at US $ 6,700 / ton and grade 550 Gr / l was offered at US $ 6,900 / ton, (FOB), due to the high demand for light pepper. White pepper of grade 630 Gr / l-FAQ costs USD 8,700 per tonne (FOB), relatively slow export.
Domestic pepper market has had a rather exciting trading session thanks to rising prices. However, the market has been quiet so far, according to buying agents, thanks to the abundant supply of goods for export companies' warehouses.
The Vietnam Pepper Association (VPA) and the Agriculture sector said that due to limited domestic supply, pepper export in the last months of the year will decrease compared to the first months of the year. While traders said that the number of pepper growers was still small. They are waiting for the price and only export when the price is better.
In 2011, domestic price peaked at VND 160,000 / kg at the beginning of September 23 and repeated on October 14, the peak price only stood for more than half of the session.
On Wednesday, October 3, the price of black pepper at Ba Ria – Vung Tau stood at 132-133 thousand VND / kg, in Dong Nai – Binh Phuoc 131 thousand VND / kg and the Central Highlands provinces 129-130,000 VND / kg.
According to the Agriculture and Rural Development sector, in September, the export of 6 thousand tons of pepper of all kinds was estimated at 44 million USD. Estimated export turnover in 9 months is 91 thousand tons, valued at US $ 627 million, down 16.7% in volume and 0.9% in value over the same period last year. The average export price of 8 months reached 6,847 USD / ton, up 22% over the previous year.
Source English (TTVN / CafeF)
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