Demand in the next few weeks is expected to increase because of the Diwali festival and the upcoming winter.
Closing the last session of the week, world futures price on NCDEX-India continued to level off. Delivery term in November decreased Rs 155 to Rs 44,020 / quintal (equivalent to USD 8,157 / ton) and delivery in February 2013 decreased by Rs 5 to Rs 38,860 / quintal (equivalent to USD 7,200 / ton) , meanwhile, delivery in December continued to go up slightly, adding Rs 30 to Rs 43,385 / quintal (US $ 8,039 / ton). (1 USD = 53,9685 Rupees)
The spot price of pepper in India in parallel with the trend of the futures market remained stable at Rs 40,700 / quintal (USD 7,541 / ton) for pint and 42,200 Rs / quintal (USD 7,819 / ton). select type.
In the international market, India's MG1 special pepper was priced at 8,500 USD / ton (C&F) with European deliveries and 8,800 USD / ton (C&F) with goods to the US, still maintained at a very high level compared to the price. pepper from other sources of production.
Black pepper, according to ASTA standards of other origins, remained at USD 7,100-7,200 / ton, lower than India at 1,600-1,800 USD / ton.
There are various rumors from importing companies that next year Indian pepper output may reach over 70,000 tons. While Indian traders estimate pepper production at about 60,000 – 63,000 tons. And pepper farmers in Karnataka, a major pepper producing state in southwestern India, insist that “pepper is double the previous year.” New Indian crop is expected to hit the market from mid-December onwards. , half a month earlier than the year before.
According to Indian industrialists, at this time, they need about 5,000 tons of black pepper to produce ground pepper to meet domestic demand as well as sell to traditional customers as planned. And part of that will be imported from neighboring Sri Lanka. But pepper prices in India are now too high.
In Brazil, the new pepper crop has been harvested, expected production is lower than the previous year. Trade sources estimate that Brazil will export about 25,000 tons of pepper this year and that these goods will be sold in the last 3 months of the year.
Indonesia reported export from January to September 2012 with only 26,800 tons of pepper, down 32.09% compared to the same period last year.
Today, Sunday, October 28, the domestic price of black pepper in the provinces of the Southeast region was 124-125 thousand VND / kg and in the Central Highlands provinces at 122-123 thousand VND / kg, maintained. Last week's prices although consumption has shown signs of increase.
The price of white pepper was purchased at 185-187 thousand VND / kg, an increase of 2-3 thousand VND / kg.
Export grade of black pepper of grade 550 Gr / l offered at USD 6,900-6,950 / ton, (FOB), while grade of 500 Gr / l offered USD 6,8000-6,850 / ton, (FOB), increasing by USD 100-150 / ton due to lack of supply. White pepper of DW 630 offered 9,900-9,950 USD / ton, (FOB), a slight increase of 50-100 USD / ton due to year-end festival demand.
Currently, traders are stepping up collecting small and small pepper with the price of 70-80 thousand dong / kg. These are sold to food processors or processors for mixing. Because importers require cheap goods, the demand for light pepper is very much, it is forced to mix with heavy pepper to lower the standard to have enough goods to deliver.
According to the report of Agriculture and Rural Development, it is estimated that in October, export 6 thousand tons of pepper, turnover reached 45 million USD. Export volume of pepper in the first 10 months is estimated at 99 thousand tons with a turnover of US $ 682 million, down 14.4% in volume but up 1.2% in value over the same period last year. Average export price of 9 months reached 6,829 USD / ton, up 18% over the previous year. Due to limited domestic supply, pepper export in the last months of the year will decrease sharply compared to the first months of the year.
Source English (TTVN / CafeF)
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