Black Pepper: Future market is up but not get hit to Spot/Physical market
August 16, 2017 at 9:25 AM ,
Rainbow Exports
Black pepper futures fast, not expected to heat in the spot
Mumbai. In the commodity exchange NCDEX, there has been an increase in the black pepper futures from the last three trading sessions, and this has led to an increase of US$80 per mt. in the spot market. Black pepper futures in NCDEX started long after 24 July 2017, when the benchmark September futures were open at US$7350 per mt. It decreased to US$7330 per mt. and on August 4, 2017, to US$7690 per mt.
Black pepper futures closed up by US$20 per mt. on August 14, 2017. Overall, in the three trading sessions, black pepper futures came in the heat of US$80 per mt. . However, traders say that there is no possibility of a big rally in black pepper but the market is passing through many uncertainties at this time.
A well-known international dealer of spices, says that the current speedy betting in black pepper is not able to understand. There is no shortage of black pepper in the country; its availability is also easy in the international market. New crop of black pepper in India will come in December. Last year, 45-48 thousand tonnes of pepper was produced in India, but according to the initial report this year, 55 thousand tonnes of pepper is estimated to be produced. However, its annual requirement is 50 thousand tonnes. The new black pepper crop of Indonesia has come to the market. Bumper production of pepper in Indonesia last year, but this year there is less crop and quality is also less. New crop will be harvested in Brazil in October.
They say that the country which produces the largest black pepper in the world, i.e. Vietnam, two hundred thousand tons of Black Pepper was produced this year and there was a new crop in March. 1.45 million tonnes of black pepper from Vietnam's two million tons of pepper has come in the market. India has imported 30,000 tonnes of pepper from Vietnam through Sri Lanka Route. There is no demand for Indian black pepper in the international market as black pepper in Vietnam and Indonesia is being sold at half price compared to Indian black pepper.
Traders says that in the international market, Indian pepper is being sold for US $ 8100 per tonne and US $ 8500 per tonne, while Vietnam's black pepper price is between US$4100-4500 and Indonesia's black pepper prices is in the same range. Indonesia has also started offering pesticides-free black pepper so that Indian pepper monopoly has ended in the world market. They say that in the first six months of the year 2017, the average price of pepper in the international market was US$5662.6 dollar per tonne. There has been a gap of 30%in this price so far.
So there is no chance that market will go up. This upside in future market is baseless and only speculators are making markets ups in NCDEX.
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