Recently, the first pepper shipment of Vietnamese traders was successfully traded on the international futures exchange SMX in Singapore with a total volume of 15 tons.
At the beginning of the week, the world price of pepper futures in the Kochi-India market continued the decline that began in the last week of March. In addition, the investigation into a number of contracts was said to be “disturbing the market. market” and the imposition of a series of new control measures by the Futures Market Commission (FMC) that caused some speculators to rush to liquidate and withdraw from the market also caused prices to drop.
However, at the Saturday session of the last week of May 5, which closed early, the price of pepper futures on the NCDEX India floor almost overcame the fear to find a high again. Futures for delivery in May, June, and July stood at Rs 37,455 per quintal, Rs 38,115 per quintal and Rs 38,740 per quintal, respectively, equivalent to $7,004/ton, $7,128/ton and $7,245/ton (1 USD = 53,4747 Rupees ).
The difference in the forward price within 1 week in rupee terms is not significant, but in terms of the USD exchange rate, the difference is up to 130-140 USD/ton due to the weakening of the rupee.
The spot price of pepper in the Indian domestic market stood at Rs 36,800/quintal, equivalent to USD 6,882/ton for bucket pepper and Rs 38,300/quintal, equivalent to USD 7,162/ton for selected MG1 pepper. although the domestic price increased by 500 Rupees, but in USD terms, the price was almost unchanged.
Indian specialty pepper on the international market is priced at $7,300/ton (C&F) for Europe and $7,600/ton (C&F) for the US, unchanged. A weakening rupee makes Indian pepper prices in the international market even more competitive.
Last week, the export price of pepper from our country and many other origins was almost unchanged.
Closing the last session of the week, on the SMX exchange in Singapore, the price of pepper for May delivery increased by 289 USD, or 4.56%, to 6,624 USD/ton and for June delivery increased by 252 USD. equivalent to 3.92% to 6,683 USD/ton, very strong increases.
The chart clearly shows that the gap between the two exchanges is shrinking
Thus, from the gap between the two world futures exchanges, which was stretched to approximately 2,200 USD/ton at its peak, it has now shrunk to about 400 USD/ton. This will motivate Vietnamese exporters to boldly put their goods on the SMX floor to trade more, export pepper will have a more competitive price and domestic pepper price will also remain high.
It is known that on April 24, the first pepper shipment of Vietnamese traders was successfully traded on the international futures exchange SMX in Singapore with a total volume of 15 tons. The standard for trading on the floor is 550 Gr/l black pepper, a common type of pepper producing countries in Southeast Asia.
According to Mr. Do Ha Nam, Chairman of the Vietnam Pepper Association (VPA), trading in the futures market will help our country’s exporters avoid unfortunate risks when world prices fluctuate. strong, especially when using the hedge of the futures market.
This morning, May 7, traders bought buckets of black pepper in Ba Ria – Vung Tau for 127-128 thousand VND/kg, in Binh Phuoc for 125,000 VND/kg, in Dak Lak-Dak Nong and Gia Lai for 123 -124,000 VND/kg, a slight increase.
According to market observers, traders from importing countries in Europe and America will step up their search for sources when Indian pepper prices have returned to a more “affordable” level.
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