The Hindu Business Line : Tight situation continues in pepper market

Reluctance on the part of Vietnamese sellers seems to have compelled the buyers, world over to cover from where ever the material is available and it appears to have created some selling pressure in Vietnam. This resulted in marginal decline in prices. According to reports, it has reduced its price to $3,900 a tonne (f.o.b). However, V Asta for June/July/Aug was quoted at $4,300 a tonne (c&f)

Brazil reported to have traded B Asta at $3,900 (f.o.b). while MLSV Asta May/June at $4,190 a tonne. MLSVB Asta recently traded at around $4,190 a tonne (c&f).

Buyers in New York said to have covered spot white pepper at $5,300 a tonne, while the prices at origins were at higher levels.

Indonesia started selling its new crop at higher premium in line with the current levels. Brazil was not making any offers.

Rise in white pepper

At the same time, a steep rise in white pepper could encourage Vietnam to convert more heavy pepper to white and thus reducing the availability of black pepper there.

The situation, therefore, continues to be tight. But, some changes seen of late in the Vietnamese trend creating a selling pressure there might result in the prices easing. However, it has become difficult to predict whether it would happen in the near term.

Given this scenario, investment in pepper needs to be done cautiously after carefully watching the market, according to market players. Indian pepper is currently competitive and overseas buyers are said to be showing interest to cover from here. Compared to the previous weekend close, domestic futures prices last week showed a substantial increase. On NCDEX, all contracts moved up by Rs 482 to Rs 633 a quintal, while on NMCE the rise was from Rs 399 to Rs 853 a quintal.

On NCDEX, the total turnover dropped by 7,845 tonnes to 2,59,842 tonnes, while on NMCE it moved up by 1,699 tonnes to 25,788 tonnes.

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