Pepper prices at the beginning of the season have soared, making gardeners optimistic, but no one has sold them because they are busy harvesting.
Only in the past 7 days, by the end of the first Monday of the week, world futures prices continued to accelerate in the fear that supply this year will be seriously shortage. India, a major pepper producer, is harvesting the crop and is forecast to experience a 40% yield drop.
Price of world term pepper on Indian market (NCDEX) continued to rise. The term of March delivery totaled an increase of Rs 4,765 to Rs 36,855 a quintal, equivalent to 14.85%, an increase of USD 967 to USD 7,478 per ton and April term also increased by Rs 4,666 to Rs 37,130 a quintal, equivalent to 14 , 37%, an increase of 947 USD to 7,534 USD / ton (1USD = 49,2852). The increase is not foreseen by both observers and traders in the futures market.
Spot price of pepper also increased Rs 4,048 to Rs 36,343 / quintal, equivalent to 12.53%, or an increase of USD 821 to USD 7,374 / ton. The higher the price of spot pepper, the higher the stress level of Indian pepper market.
In contrast, on the Sing (SMX-Singapore), the price of March futures increased by 93 USD, equivalent to 1.44%, to 6,531 USD / ton and the April term also increased by 94 USD, equivalent to 1.45 %, to USD 6,592 / ton, a very slight increase compared to the Indian term pepper in the same period.
Due to the characteristic of time, the closing price of Sing exchange is used for reference floor. But the 10-fold price increase on the Indian exchange makes the Sing floor very surprised.
Pepper price traded on SMX-USD / tonne (source: CafeF)
According to the report of Agriculture, estimated export in February reached 6 thousand tons with a turnover of 42 million USD. Export of the first 2 months was estimated at 9 thousand tons and earned 66 million USD, down 4.5% in volume but up 39.1% in value over the same period last year. Pepper prices increased sharply, the average export price in January reached 6,971 USD / T, up 42.4% (equivalent to 2,074 USD / T) compared to the same period in 2011.
This morning, 29/2, black pepper prices in the domestic market continued to increase slightly. In Ba Ria – Vung Tau is 131,000-132,000 VND / kg, Binh Phuoc 129,000 VND / kg, Dak Lak-Dak Nong 127,000 VND / kg, Gia Lai 126,000 VND / kg, an average increase of 5,000 VND / kg within the past week .
Ms. Thanh Tam, a pepper farmer in Cu Kuin, Dak Lak, said that the price of pepper has just risen at the beginning of the season, making the gardeners optimistic, but no one has sold it because she is busy harvesting. Up to now, her family has harvested only 1/3 of the area, because this year the heat is not high, so the pepper ripens slowly compared to previous years.
In general, the domestic pepper market was high at the beginning of the season, but trading was not active. The purchasing demand of exporting companies averaged only half that of previous years.
The world futures pepper market continuously pushed up the price, which also prevented the flow of goods to the market. Invisible general, now pepper growers fall into “hugging the price queue”.
English
Source TTVN / CafeF
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