Although supplies from Indonesia have hit the market, helping to improve the situation, pepper prices unexpectedly increased by nearly 5% this week.
Ending the last session of the week yesterday afternoon, June 11, the world pepper price on the Kochi-India market increased sharply to Rs 30,293 per quintal and Rs 30,170 per quintal, equivalent to USD 6,762/ton and USD 6,734 /ton for June and July tenors.
Thus, in the past week, the world price of pepper for June term increased by Rs 1,103, equivalent to USD 246, or 3.9%, and for July term increased by Rs 1,346, equivalent to USD 300, or 4.7%, an increase. very surprising beyond the expectations of experts.
After more than 10 days of quiet trading, the first trading session of the week showed signs of improvement, but the world pepper market has not seen any specific symptoms, so the price is almost unchanged.
Information about Indonesia’s export volume in the first 4 months of 2011 still increased by over 54% over the same period last year, proving that the country’s reserves have been released to the market.
At the same time, information about Indonesia, Malaysia and Brazil will be harvested from the end of June to the end of August, with the forecast of the productivity of these countries dropping significantly compared to the previous year, will not affect the market in the short term. term.
But in the long term, the supply of pepper is still worrying when the supply has not kept up with the demand.
Entering 2011, the International Pepper Association (IPC) has made a forecast, this year the total global production is estimated at 310,000 tons of all kinds of pepper, of which black pepper is 244,600 tons and white pepper 65,300 tons, down about 6,500 tons compared to last year.
IPC also said that due to increased consumption, this year the world will continue to have a shortage of nearly 45,000 tons of pepper, compared with a shortage of 53,000 tons in 2010.
While the world relies on pepper from India and Vietnam to ease the pressure of supply, Indian pepper growers convert some areas to other crops of higher economic value such as high rubber and coffee production decreased this year and Vietnamese pepper growers limited their products to the market to wait for high prices.
In recent days, Indian and world traders are not interested in buying and selling pepper because they see the price increase on the Indian floor but the real goods do not increase.
At the end of the week, Vietnamese export pepper was offered for sale with 550 Gr/l black pepper priced at $5,500/ton and 500 Gr/l black pepper priced at $5,200/ton (FOB). Brazilian pepper 1 is priced at 6,200 USD/ton and Brazil 2 at 6,100 USD/ton, Indian pepper grade MG1 is priced at 5,800 USD ton, (FOB), the price unchanged from last week.
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