My hearty congratulations to you...

Dear Michail

My hearty congratulations to you for sharing on your thoughts on black pepper.In fact you have come out with the actual thought of pepper exporters, pepper traders and people who are connected with pepper from india i must say.Actually they are in a situation where they have no role to play where it is controlled by cartels and operators who may have not seen pepper at all.

I an sure that out of india most of the contracts which was done for june,july, august and september shipments are in the range of usd 1600 and usd 1800 pmt cfr ny and Losnageles. May be one or two parcels of usd 1.00/lb may be there but since last two months we being one amongst the first three exporters have not seen any buying interest at all from usa or europe because of the very high prices.
The exporters here are happy in one way,they can still buy farmgate at current levels and export it to the warehouses of public pepper exchanges without any problem realising quick cash flows and dont have to wait for months to get the export freight subsidy from government.
But other producing country exporters they have only one alternative either perform and loose heavily or default.What i would suggest is to approach government of india through IPC and start an international exchange for pepper in india so all concerned in the trade can hedge or play games or whatever they want to.
Take care
Best regards

Better stay away from the market rather than swimming against the tide.

Dear Sir,

There is a basic economic reason for the market to move up.The demand for the second half of the year is exceeding supply.
That is why the market is showing strength.It has moved up faster because there were some smart businessmen who understood the scene and made money out of it.
If sellers can take a bearish call and sell for the crop which is still to come,why cant any one take a bullish call?
Hoarding and selling in advance are part and parcel of our business.Everybody is into business to make money right?
It would be best to stay away from the market rather than swimming against the tide.

Thanks.....
Regds,

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...