Kochi: The Indian pepper is placed at an advantageous position as, at present, the prices of the Indian produce are the lowest, when compared with other origins.
Indian parity is at around $4,000 a tonne (c&f) whereas, Asta grade pepper in Vietnam is reportedly firm at above $4,200 a tonne (fob). Brazil is also said to be offering above the Indian levels.
Primary market
Given this scenario, overseas buyers have turned towards India and enquiries are pouring in for March/April shipments. But the availability of the commodity in the primary market was tight, as most of the produce had been moved out to North Indian markets - directly from the primary markets evading tax. As a result, the exporters had to cover exchange delivered pepper available below spot prices.
There is said to be a squeeze in the availability of Asta grade pepper in Vietnam, because of the sharp rise in the white pepper prices. Vietnam is said to be converting large quantity of heavy pepper. Consequently, the prices of Asta is ruling firm at higher levels. Stock position in other origins such as India, Indonesia and Brazil is also reportedly not very encouraging. This tight supply position is probably the factor pushing up the prices.
Distant positions
However, the Indian parity for nearby positions on the futures trading during the week declined while distant positions moved up.
On the NCDEX March, April and May contracts showed a marginal decline from Rs 1 to Rs 69 a quintal during the week, while July, June and August went up from Rs 284 to Rs 868 a quintal.
On NMCE March and July contracts showed a slight increase, while all other contracts dipped marginally. The spot prices, however, remained at previous weekend levels of Rs 14,300 (un-garbled) and Rs 14,900 (MG 1) a quintal at Saturday close. Total turnover on NCDEX fell from 12,526 tonnes to 77,166 tonnes, while on NMCE it declined by 369 tonnes to 8.831 tonnes.
Black pepper
Open interest position on NCDEX fell by 1,634 tonnes to close at 20,451 tonnes. March and April positions dropped by 1,784 tonnes and 1,254 tonnes respectively during the week. On NMCE open interest declined by 192 tonnes to 1,611 tonnes. According to the International Pepper Community (IPC), the black pepper market continued to be mixed during the week.
In India and Vietnam, prices declined, while in Sarawak and Sri Lanka prices were up. In Lampung the price was relatively stable.
In India, the market was slower. Prices eased further with limited activity. Futures prices eased by around 6 per cent compared with last week.
At HCMC, Vietnam, the market showed a downtrend with limited activity. Prices for local purchases declined from VND 59,000 a kg at beginning of the week to VND 57,000 at the week’s close. FOB prices also decreased from $3,800 and $4,000 a tonne to $3,700 and $3,900 respectively for black pepper 500 GL and 550 GL.
On an average, prices at HCMC declined significantly by around 9 per cent compared with last week’s prices.
In Sarawak, local prices increased marginally by MYR 25 a tonne and FOB prices offered at $4,600 a tonne. Prices increased by 2 per cent locally and 4 per cent FOB compared with last week.
In Sri Lanka also prices increased marginally by 1 per cent. In Lampung, local prices were reportedly stable. But in dollar terms, the prices eased due to weakening of Indonesian Rupiah against Dollar.
The market for white pepper remained firm. In Kuching and Hainan, prices increased, while in Bangka it was relatively stable. In dollar terms, however, the price eased marginally by 1 per cent.
Indian parity is at around $4,000 a tonne (c&f) whereas, Asta grade pepper in Vietnam is reportedly firm at above $4,200 a tonne (fob). Brazil is also said to be offering above the Indian levels.
Primary market
Given this scenario, overseas buyers have turned towards India and enquiries are pouring in for March/April shipments. But the availability of the commodity in the primary market was tight, as most of the produce had been moved out to North Indian markets - directly from the primary markets evading tax. As a result, the exporters had to cover exchange delivered pepper available below spot prices.
There is said to be a squeeze in the availability of Asta grade pepper in Vietnam, because of the sharp rise in the white pepper prices. Vietnam is said to be converting large quantity of heavy pepper. Consequently, the prices of Asta is ruling firm at higher levels. Stock position in other origins such as India, Indonesia and Brazil is also reportedly not very encouraging. This tight supply position is probably the factor pushing up the prices.
Distant positions
However, the Indian parity for nearby positions on the futures trading during the week declined while distant positions moved up.
On the NCDEX March, April and May contracts showed a marginal decline from Rs 1 to Rs 69 a quintal during the week, while July, June and August went up from Rs 284 to Rs 868 a quintal.
On NMCE March and July contracts showed a slight increase, while all other contracts dipped marginally. The spot prices, however, remained at previous weekend levels of Rs 14,300 (un-garbled) and Rs 14,900 (MG 1) a quintal at Saturday close. Total turnover on NCDEX fell from 12,526 tonnes to 77,166 tonnes, while on NMCE it declined by 369 tonnes to 8.831 tonnes.
Black pepper
Open interest position on NCDEX fell by 1,634 tonnes to close at 20,451 tonnes. March and April positions dropped by 1,784 tonnes and 1,254 tonnes respectively during the week. On NMCE open interest declined by 192 tonnes to 1,611 tonnes. According to the International Pepper Community (IPC), the black pepper market continued to be mixed during the week.
In India and Vietnam, prices declined, while in Sarawak and Sri Lanka prices were up. In Lampung the price was relatively stable.
In India, the market was slower. Prices eased further with limited activity. Futures prices eased by around 6 per cent compared with last week.
At HCMC, Vietnam, the market showed a downtrend with limited activity. Prices for local purchases declined from VND 59,000 a kg at beginning of the week to VND 57,000 at the week’s close. FOB prices also decreased from $3,800 and $4,000 a tonne to $3,700 and $3,900 respectively for black pepper 500 GL and 550 GL.
On an average, prices at HCMC declined significantly by around 9 per cent compared with last week’s prices.
In Sarawak, local prices increased marginally by MYR 25 a tonne and FOB prices offered at $4,600 a tonne. Prices increased by 2 per cent locally and 4 per cent FOB compared with last week.
In Sri Lanka also prices increased marginally by 1 per cent. In Lampung, local prices were reportedly stable. But in dollar terms, the prices eased due to weakening of Indonesian Rupiah against Dollar.
The market for white pepper remained firm. In Kuching and Hainan, prices increased, while in Bangka it was relatively stable. In dollar terms, however, the price eased marginally by 1 per cent.
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