New Delhi 27/10/2009
Indian future delivery prices which got triggered from Friday with domestic traders paying up the asking prices of sellers as the pepper traders/stockiest are getting tired besides the speculators as the yearly average prices have been hovering around inr 145/-per kg for the garbled stuff and usd 140 for the farmgate pepper since 2006 june although other commodities have soared as high as 2 to 3 times of its value.
Interestingly since money talks the spot pepper prices have not moved up in tandem with the future delivery prices as operators are still not comfortable going long because fundamentals of the market are proving right.
The Indian casino players have been playing with statistics of Vietnam and Indonesian crop estimates and carry overs all got stunned with Vietnam exporting close to almost 40% more of its predicted crop numbers and Indonesia becoming a "akshya Patra" ( never ending source) for importers .
India the cheerleader hardly exports any of its origin pepper but trade millions of tones in the National Agri Casino ( where the price of pepper is different for same delivery although specifications are same ) Although Indonesia has increased the asking prices to usd 3050 to usd 3100 fob panjang surprisingly Vietnam and Brazil are keeping their tags much below to have more business. Cheer leader India has got its own pockets to park the pepper at very high prices to fellow comrades which is being completely ignored by Vietnamese and Sri Lankans who get excited by the waves in the Indian Casino.
There is a hue and Cry that there is no farmgate pepper available in the terminal market, but according to Mr Jojan Malayil of Bafna Enterprises and the countrys largest exporter of Indian Origin black pepper in various forms said " I disagree to the statements which are coming from various corners as the national Exchanges who have so far not defaulted on Pepper deliveries whatever they trade at the end of the day is available for physical deliveries which are as good as physical pepper and is available in thousands of tones for those who require it but should be prepared to forget contract specifications . One has to see whether the domestic demand will continue at higher levels or the demand will dry up if the futures start dropping.
The Indian price tag of Asta pepper has moved to usd 3275-3300 pmt fob Cochin against Indonesians usd 3050-3100 fob Panjang and Vietnams usd 3100-3150 pmt fob Hochiminh and Brazil usd 2850 fob Belem.
Jennifer La Rive
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