Pepper Market on the Edge

After several years of stable market under the Vietnam hegemony all of sudden the placid lake waters turned in to a powerfull tsunami raged vages.
An increase in average prices from 1,300 upt to 2,400 dolars equals to aproximatelly 85% in just 40 days or so.

Who may absorb and how to absorb such turn up ?

First it must be considered that the only public exchanges trading pepper futures are in India. Futures trade was originaly conceived to hedge ( protect) physical trade.
Lately this noble reason has been somehow forgotten and futures trade became a profitable business itself.
Pepper operators in these exchanges are becoming rare players. Big parcel of exchage traders are financial or even common people without any relationship nor knowledge of the physical trade, looking for easy profits and, oftenly, loosing their money in such casinos.

So the actual purpose of this roller-coaster is to keep prices moving up and down in order to realize the spreads. Actually nobody cares about the product itself which is the base for all this entretainment. Read full article...