05/07/2022
🚩 Pepper price today July 5th, still moving sideways, supply is exhausted
Last week, on the National Commodity Exchange (NMCE), contracts for July, August and September delivery each rose by Rs 2,112, Rupees 2,106 and Rupees 1,962 to close at Rs 40,929 per quintal. , Rs 41,000/weight and Rs 40,701/weight on Saturday.
Similarly, on the IPSTA floor, three contracts traded up Rs 3,000, Rs 2,940 and Rs 2,940 respectively, closing at Rs 40,435 per quintal, Rs 40,313 per quintal and Rs 40,314 per quintal (equivalent to $6,797 per quintal). ton). 6,776 USD/ton and 6,776 USD/ton).
Spot prices spiked to close at Rs 39,500/quintal ($6,639/ton) for bucket pepper and Rs 41,000/quintal ($6,892/ton) for select pepper, due to strong demand amid supply supply is scarce. (1 USD = 59.4932 Rupees).
According to experts, prices in most commodity markets are temporarily slowing down, due to speculation that withdraws capital because of concerns that risks will increase before the July monetary policy meeting of the Federal Reserve. America (Fed). Many sources said that the Fed will continue to raise interest rates in the next meeting.
The increase in interest rates will reduce people's consumption demand, as well as weaken the need to expand investment of businesses. Therefore, Vietnam's export performance is likely to slow down in the coming quarters as consumers in key export markets such as the US and Europe tighten their spending.
In the medium term, it is said that the market will increase again in the middle of the third quarter, when the demand for imports for the year-end festivals and Tet holidays in other countries increases. In addition, Vietnam's exports are also expected from the Chinese market to absorb about 30,000 - 40,000 tons of pepper in the second half of 2022.
In India, last week, pepper futures prices rose again due to some speculative activities in the context of continued tight supply and strong demand.
Due to the strong depreciation of the Rupee, importing pepper becomes expensive, forcing importers to buy from domestic sources. These phenomena combined with strong domestic demand have pushed prices up.
Heavy rains in the main pepper growing areas of the states of Kerala and Karnataka have halted the harvest. Many local traders who had bought a very limited amount in advance predicted prices would drop as the new crop hit the market. However, contrary to their expectations, the price has been stable throughout.
Vietnam is said to have exported about 85,000 tonnes of pepper in the first six months of this year. Therefore, pepper prices may not decrease anymore because the supply of goods has also been exhausted.
Indonesia remains quiet as the product of the new crop is expected to hit the market in mid-July. Brazil too, the new crop can only be on the market around the end of September, early October.
With that situation, the current main supply outside of Vietnam is India and if Indian pepper prices are still competitive, some businesses may come to Malabar to find goods in the coming days.
At the same time, a shortage of available supply can be an issue. The current situation may help the price of pepper backlog in the warehouses of exchanges in December last year to increase to the level that shippers expect.
(Nguồn: Internet)
