In just the past 3 days, Indian pepper prices have decreased by more than 200 USD per ton and lost 500 USD / ton within half a month. Vietnam's export pepper, which is sold at a price higher than last week's US $ 100.
Demand for pepper in the world increases annually by an average of 5%, so the global pepper output in the near future cannot compensate. Data of the International Pepper Association (IPC) is expected over many years showing that the shortage in 2010 was 27-30 thousand tons, in 2011 it was 35-40 thousand tons and in 2012 was over 50,000 tons …
In recent years, with an export volume of over 100,000 tons / year, Vietnam has occupied the No. 1 position in the world. Not only that, with a high level of intensive farming, Vietnam's pepper output also ranks first in the world, although the planted area is still less than other major producing countries such as India and Indonesia. So in the near future the whole world depends on Vietnamese pepper.
However, Indian traders are the ones who control the price of world pepper. World-term pepper trading platform based on Indian land is also an advantage for them to dominate. Catching the high demand, Indian term pepper price was skyrocketing, setting new historical records and making a big difference with futures price at SMX in Singapore.
Realizing that the difference has reached an absurd level, the Indian Commission for Futures Market has recently proposed a correction. In addition, there is more information on Vietnam's crop output this year and a significant increase in information that a large number of imports from Vietnam contributed to the cooling of pepper prices on the Indian futures market.
In the past 3 consecutive days, Indian term pepper price suddenly dropped sharply, April delivery term dropped by Rs 2,305, or 5.9%, to Rs 36,795 / quintal, equivalent to USD 7,161 / ton and May delivery also dropped 1,945 rupees, or 4.87%, down to Rs 38,025 a quintal, equivalent to 7,400 USD / ton. (1 USD = 51.3851 Rupees)
Spot price of pepper also decreased further Rs 1,000, MG1 selected type dropped to Rs 37,500 a quintal, equivalent to US $ 7,298 / ton and the type of pepper decreased to Rs 36,000 / quintal, equivalent to US $ 7.005 / ton, down more than 200 USD.
Similar but contradictory, in SMX-Singapore, April delivery price increased by 8 USD, which increased by 0.13%, to 6,379 USD / ton and delivered in May increased by 50 USD, an increase of 0.78%, to 6,430 USD / ton. The increase was quite small, but it was clearly reflected the market demand and supply.
The difference in term price between 2 pepper floors was narrowed
As confirmed, the price difference on the 2 floors was too different, which did not reflect the actual market price, so it needed to be narrowed. Therefore, the opposite movement between 2 exchanges is almost inevitable. Although the disparity gap shrank to approximately USD 1,000, compared to the previous month, it was over USD 2,000, but it is still unreasonable.
Over the past half month, Indian pepper prices have been very volatile, and the downtrend that dominates the market has not surprised traders. But domestic prices, which used to fluctuate according to the Indian market, were almost still, which worried farmers.
According to traders in Dong Nai, the volume of transactions dropped sharply, only about one third compared to the same period last year. At this time, Vietnam's harvest season is in the final stage and the psychology of waiting, listening to the price, still covers the main pepper growing areas.
Indian pepper, a special type of MG1 exported to Europe, was priced at US $ 7,450-7,500 / tonne and exported to the US at US $ 7,750-7,800 / tonne (C&F), down US $ 500 / ton in the past half of the month.
Vietnam's export price of grade 500 Gr / l-FAQ was priced at US $ 6,100-6,150 / ton and 550 Gr / l-FAQ grade offered at US $ 6,450-6,500 / ton (FOB), an increase of US $ 100 compared to the previous week.
Today 15/4, domestic black pepper in Ba Ria – Vung Tau cost 120-121 thousand VND / kg, in Binh Phuoc 117 thousand VND / kg, in Dak Lak-Dak Nong and Gia Lai 116 thousand VND / kg, maintained back to the price set from the beginning of the month.
English
Source TTVN / CafeF
Source link
