Recently, the first batch of pepper 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 term pepper price in Kochi-India market continued the decline starting from the last week of March. In addition, the investigation of a number of contracts is said to “cause a disturbance in the market.” market ”and the imposition of a series of new controls by the Futures Market Committee (FMC) that has led some speculators to liquidate and withdraw from the market as well as drive prices down.
However, at the closing session on 5/5 at the end of the week, the futures price on NCDEX India almost overcome the fear to find the high level. The term of delivery in May, June and July stood at Rs 37,455 a quintal, Rs 38,115 a quintal and Rs 38,740 a quintal, equivalent to USD 7,004 per ton, USD 7,128 per ton and USD 7,245 per ton, respectively (USD 1 = 53.4747 rupees).
The difference in terms of term within 1 week in Rupee was not significant, but in USD exchange rate, the difference was up to 130-140 USD / ton due to the weakening Rupee.
Spot pepper prices in the Indian domestic market stood at Rs 36,800 a quintal, equivalent to US $ 6,882 per tonne for pepper and at Rs 38,300 a quintal, equivalent to US $ 7,162 per ton for MG1, Although local prices increased by Rs 500 but converted into USD, the price is almost unchanged.
Indian parity in the international market is priced at US $ 7,300 / ton (C&F) for Europe and US $ 7,600 / ton (C&F) for the US, unchanged. A weak rupee makes Indian pepper prices more competitive in the international market.
Last week, export prices of our country and many other origins were almost unchanged.
Closing the week's final session, on SMX trading floor in Singapore, May futures price for May delivery increased by US $ 289, or 4.56%, to US $ 6,624 / ton and June delivery for US $ 252, equivalent to 3.92% to USD 6,683 / ton, the increase is very strong.
The chart shows the difference in distance between the 2 floors being shrinking
Thus, from the gap between the two world futures pepper floor at the highest time was stretched to approximately 2,200 USD / ton has now shrunk to about 400 USD / ton. This will encourage Vietnamese exporters to boldly place their goods on the SMX floor, export pepper will be more competitive and domestic pepper prices will remain high.
It is known that on April 24, the first batch of pepper of Vietnamese traders was successfully traded on the SMX international futures exchange in Singapore with a total volume of 15 tons. The standard of trading on the floor is black pepper grade 550 Gr / l, common type of pepper producing countries in Southeast Asia.
According to Mr. Do Ha Nam, President of Vietnam Pepper Association (VPA), trading in futures markets will help Vietnamese exporters avoid unfortunate risks when world prices fluctuate. Strong, especially when using hedging instruments of the futures market.
This morning 7/5, traders buy black pepper in Ba Ria – Vung Tau at 127-128 thousand VND / kg, in Binh Phuoc 125 thousand VND / kg, in Dak Lak-Dak Nong and Gia Lai 123 price -124 thousand VND / kg, a slight increase.
According to market observers, traders from importing countries in Europe and America will step up their sourcing when Indian pepper prices have returned to a more “reasonable” level.
English
Source TTVN / CafeF
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