In the past 10 days, pepper prices on the NCDEX exchange (Kochi-India) continuously increased to a high level. Traders of major consuming countries such as the US, China and Arab countries increased their purchases strongly. The domestic price of pepper has also grown continuously.
Get a good price
However, at the end of the last session of the month, on March 31, the world pepper market cooled down, the spot price of pepper fell to Rs 23,000 for bucket pepper and Rs 23,500 for MG1. The price of pepper for May futures fell by Rs 200 to Rs 24,990 and June futures dropped Rs 134 to Rs 25,231 (transaction unit is Rs. 100kg), equivalent to $5,546/ton and $5,599 respectively. /ton. Compared to 10 days ago, pepper price still increased by nearly 300 USD/ton on average for all kinds.
Pepper price futures trading in May/November at NCDEX (Kochi-India).
On the afternoon of March 31, in Ba Ria – Vung Tau, white pepper costs 135,000-140,000 VND/kg, especially high quality white pepper, commonly known as garden pepper specialties, costs up to 160,000 VND/kg but the quantity is There is also not much, while the price of black bucket pepper has increased to 100,000 VND/kg and there is a possibility that the price will increase further because this area is at the end of the season, the source of goods is starting to be scarce.
According to domestic agricultural purchasing agents, if the price of coffee usually only grows in the long term, the price of raw cashew nuts and pepper recently fluctuates very quickly in the short term, making agents or retailers speculation in domestic agricultural products was also very surprising.
A quick report from the US shows that the pepper market in other countries is also growing hot. In Vietnam, the pepper market has established a continuous uptrend for the past several days as Chinese traders are accelerating their massive buying of spot black pepper. In addition, in the key pepper growing areas, there have been unusually unseasonal rains lasting for many days. This has slowed the harvest and will delay the market arrival.
Currently, the provinces in the Central Highlands are waiting for favorable weather, when the unseasonal rains and cold winds end, and the gardeners enter the harvest season. Surveys show that farmers know how to regulate the amount of sales, avoiding the phenomenon of “in the falling season” like every year.
According to the “old farmers of tri Dien”, this year’s pepper crop is likely to have a higher yield than last year and the pepper quality is also higher. The country’s output is expected to reach 110,000-115,000 tons in this crop, compared with less than 110,000 tons of the previous crop.
Forecast of world pepper production in 2011 (source: Reuters)
Supply not enough demand
It is known that the world’s total pepper consumption last year was 320,000 tons, the average annual increase in demand was 5%. Thus, the world’s total demand this year will be about 335,000 tons. But this year’s world pepper production is forecast to reach only 257,000 tons, down 33,700 tons compared to last year. The amount of the reserve is still 40,000 tons, bringing the total supply this year to 297,000 tons. In general, the world is short of 38,000 tons. Supply and demand imbalance is the reason for the continuous growth of world pepper prices since the beginning of last year.
The World Pepper Association (IPC) expects India’s output this year to be only 48,000 tons, down 2,000 tons compared to the previous crop. Production in Brazil and Indonesia also decreased slightly while China’s output this year remained unchanged. Meanwhile, according to Reuters, pepper output of major producing countries, except for Vietnam, all decreased seriously.
According to the General Statistics Office of Vietnam, in March, the whole country exported 15,000 tons of pepper of all kinds, with a turnover of 73 million USD, bringing the export volume of the whole first quarter of 2011 to 25,000 tons of pepper of all kinds, total turnover reached 121 million USD. Compared to the same period last year, it decreased by 11.7% in volume but increased by 41.1% in price.
The Vietnam Pepper Association (VPA) also said that in the first half of March, Vietnamese enterprises exported 6,796 tons of pepper of all kinds, including 5,548 tons of black pepper and 1,248 tons of white pepper. The average export price of black pepper was USD 4,403/ton and white pepper was USD 6,972/ton.
Recently, enterprises are selling black pepper 500gr/l at the price of 4,950-5,000 USD/ton (FOB), while the 550gr/l grade has not seen any transactions.
Vietnam is the country that produces more than 30% of pepper and occupies the number 1 position in the world in exporting this spice for many years.
According to the CafeF
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