JLR
KochiAugust 14, 2009
The futures market of black pepper does not move in tandem with the real market parameters as there is no panic trading in spot even after futures prices collapsed heavily by almost 10% in 3 days and slightly recovered today at close of business.
Difference between September and indicative spot farmgate pepper prices are still greater at around Rs 800 a quintal according to India Pepper and Spice Trade Association who still dictates spot prices to all media since decades.
It is the low stock in the country that seems to determine the course of action in the market rather than speculative trading in futures.
It is because of this, there are nosellers even after the prices plummetted heavily in 3 trading sessions.
India is no longer a major global player, thanks to low-stock and theLicenced casino Ncdex.The country commands a stock of around 10,000 tonnes which can be consumed domestically during the winter season. But the ongoing bear phase in futures trading has badly hit the domestic demand, said traditional pepper traders of Wyanad and Idukki.
The trend caused a slowdown in the demand from upcountry markets for the time being but market sources expect an improvement once the prices stabilised.
Meanwhile Vietnam which opened today their 500 g/l trades @ usd 2450 pmt have traded it late in the evening to as high as usd 2600 pmt fob hcmc for prompt shipments.
No news from Indonesia today as they are carefully watching the movement and brazilian pepper prices are steady unchanged.
What we lack is consumer buying in india as well as from overseas and the bull rallies will sustain only if that happens according to Mr Jojan Malayil Vice Chairman All India Spices Exporters Forum.
Jennifer LaRive
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