Just in the past 3 days, Indian pepper price has dropped by more than 200 USD per ton and lost 500 USD/ton within half a month. Vietnam’s export pepper in which was sold at a price higher than last week’s 100 USD.
The world’s pepper demand increases every year by an average of 5%, so global pepper production in the near future cannot be compensated. The data of the International Pepper Association (IPC) is expected over the years to show that the shortage in 2010 is 27-30 thousand tons, in 2011 is 35-40 thousand tons and in 2012 is over 50,000 tons…
Over the past years, with an export volume of over 100,000 tons/year, Vietnam has taken the number one position in the world. Not only that, with a high level of intensive farming, Vietnam’s pepper output is also at the top of the world, although the planting area is still less than other major producing countries such as India and Indonesia. So in the near future the whole world is counting on Vietnamese pepper.
However, it is the Indian traders who control the world pepper prices. The world pepper futures exchange located in India is also an advantage for them to dominate. Capturing the high demand, the Indian pepper futures price was pushed to a high level, setting new historical records and creating a large difference with the futures price on the SMX exchange in Singapore.
Realizing that the difference has reached an unreasonable level, the Futures Market Commission of India recently had to take corrective measures. In addition, there is more information about the outstanding increase of Vietnam’s crop output this year and the news that a large number of goods imported from Vietnam contributed to the cooling of pepper prices in the Indian futures market.
For the past 3 consecutive days, Indian pepper futures prices suddenly dropped sharply, April delivery fell all of Rs 2,305, or 5.9%, to Rs 36,795/quintal, equivalent to USD 7,161/ton and May delivery also fell by Rs 1,945, or 4.87 percent, to Rs 38,025 per quintal, or $7,400 per ton. (1 USD = 51.3851 Rupees)
Spot pepper price also decreased by 1,000 Rupees, MG1 selected pepper dropped to Rs 37,500/quintal, equivalent to $7,298/ton and bucket pepper dropped to Rs 36,000/quintal, equivalent to $7,005/ton, down more than 200 USD.
Similar but opposite, on SMX-Singapore, pepper price for April delivery increased by 8 USD, or 0.13%, to 6,379 USD/ton and for May delivery increased by 50 USD, or 0.78%, to 6,430 USD/ton. Although the increase was quite slight, it clearly showed the market supply and demand.
The forward price difference between the two exchanges has narrowed
As confirmed, the forward price on the two exchanges is too different to reflect the actual market price, so it needs to be narrowed. Therefore, the opposite movement between the two exchanges is almost inevitable. Even though the gap is only about $1,000, over $2,000 from last month, it’s still unreasonable.
In the past half-month, Indian pepper prices fluctuated greatly, and the downward trend that dominated the market did not surprise traders. But the domestic price of pepper, which used to fluctuate according to the Indian market, was almost stationary, making farmers worried.
According to pepper traders in Dong Nai, the amount of goods offered for trading has dropped, 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 mentality of waiting and waiting for prices still covers the main pepper growing areas.
The price of Indian pepper, MG1 special type exported to Europe, is priced at $7,450-7,500/ton and exported to the US is priced at $7,750-7,800/ton (C&F), down $500/ton within the past fortnight only.
The export price of Vietnam’s pepper grade 500 Gr/l-FAQ is priced at $6,100-6,150/ton and 550 Gr/l-FAQ is offered at $6,450-6,500/ton (FOB), an increase of $100 compared to the previous week.
Today, April 15, domestic black pepper in Ba Ria – Vung Tau costs 120-121 thousand VND/kg, in Binh Phuoc costs 117,000 VND/kg, in Dak Lak-Dak Nong and Gia Lai costs 116,000 VND/kg. kg, maintaining the price set from the first day of the month.
English
Follow TTVN/CafeF
Source link
