BLACK PEPPER STARWAR

This e-mail was received and distributed by ABEP - Brazilian Pepper Exporters Association and shows how the Black Pepper market strugle - The Bulls X The Bears...
----------------------
Dear Nagano San,

I would like to make a clarifications that Indonesian market never been weak in term of locall price. The price down from 4300 to 4100 only because of indonesian currency is weak again usd . In fact locall market price is very steady and strong eventhough the crop is starting coming in. Parity fob still in level usd 4100/mt without profit. Therefore Indonesian exporter must sell above this level in order to get some profit. Furthermore i never saw and heard in Usa market or Europe market Indonesian exporters being agressive to make an offer or try to sell cheap. Indonesian exporters until today dd.2 August very quiet and silent in the usa and europe market. No body really want to do anything due to steady locall market. I am sure the informations that has been spread in Brasil about the weak of Indonesia prices definatelly to mislead market price and in order to press the market in Brasil and this is the only ways to get the brasilian exporters nervous and willing to sell cheap price and foward shipment. Specailly when exporters and other who does not understand the real market situations for supply and demand will be nervous regarding the mislead market informationsof other origin down from whoever has intentions and interest to buy cheap.
For your knowledge right now many peoples use Indian futures market price to attack Indonesian exporters and try to get Indonesian exporters willing to sell cheap and follow the futures market in India. But unfortunatelly it does not work because Indonesian exporters fully awares of this tricks and we are fully awares that export out of India and import out of india since jan -june are still much more import than what they export. This export include the finish product such as oleoresin and ground products. And we fully understand that futures market in India only for peoples want to gamble in the paper . If we are talking Mg1 and try to buy real black pepper from local collector and farmers, definatelly we can not buy any black pepper because their local makret price much higher than exchange price.
If one day there are crazy people who has money and want to gamble and buy alot in futures exchange in India for nearby and later positions and keep holding the positions. I am sure that futures exchange in India will be cheos and price in the exchange will be up to the roof.
Hope this explanations can help you to explained to your exporters freinds in Brasil.
Finally the most important origin must understand the momentum of the pepper prices must be back to basic supply and demand. When the supply is much less than demand we must see the price must go up. Everybody can not run away from these facts.

Rgds
Yuli