The Hindu Business Line : Tight supplies keep pepper market hot

Total open interest on NCDEX moved up by 1,532 tonnes to 21,491 tonnes. During the week, 1,034 tonnes of February contract were delivered. Open interest for March witnessed a drop of 1,895 tonnes.

Overall supply position continued to remain tight. Availability of Asta grade pepper was thin in other origins. Heavy pepper arrivals in Vietnam even after 30 per cent of harvesting were negligible. Hence, Asta prices there were ruling above $4,000 a tonne (f.o.b.). Indian parity was around $3,900 a tonne (c&f) remained competitive. India is currently at an advantageous position.

In the International market, the buyers have been waiting for a selling pressure to build up in Vietnam. The low output in India and its huge domestic market capable of absorbing the entire quantity might place Vietnam at an advantageous position in the second quarter of the year. Meanwhile, unconfirmed overseas reports said that the Indonesian 2008 crop would be around 20 per cent smaller.

IPC REPORT

According to the International Pepper Community (IPC) report, black pepper market firmed up during the week. In Vietnam, the market showed some improvement. Pepper prices at HCMC increased steadily through out the week and moved up significantly during the last two days.

Price for local purchases was VND 52,000 a kg at the beginning of the week increased to VND55,500 a kg at the week’s close. F.O.B. prices were $3,450 a tonne for black 500 GL and $3,650 for 550 GL. On an average, pepper prices at HCMC increased by four per cent from the previous week. In India, prices firmed up slightly, but trading was slower as indicated by the decrease in volume of trade at the commodity exchange. In Sarawak, local prices increased by two per cent, but f.o.b. prices were stable at $3,850. In Europe, Sarawak black pepper price increased by three per cent.

WHITE PEPPER

The market continued to be quiet. In Bangka and Sarawak, local prices were relatively stable. But in dollar terms, prices increased marginally by one per cent due to weakening dollar rate against local currencies. In Europe, Muntok white pepper price increased by five per cent.

In Brazil, according to Brazilian Pepper Trade Board (BPTB), exporters stopped offering and were talking prices up to $3,700 f.o.b. for ASTA and $3,550 for B2 500 GL.