Sham Nair/19th August 2010 /04 45 HRS IST
Spectacular shopping by indian value added industries in Indonesia pushed the Indonesian ASTA Pepper prices from usd 3775 pmt fob panjang to usd usd 4050 pmt fob panjang in 72 hours surprised the USA and European buyers on Wednesday.
With Indian futures exchange suddenly exciting its players since Monday with big propaganda by the media that the country is suddenly having good demand from within the country and outside the country speculators came into play and raised the future delivery prices making holders of spot cargo happy as they had a chance to sell their holdings at a very high price which they missed in late july according to our industrial sources.
"I am astonished with the news like this" said a senior trader in a multinational company "how can India have export enquiries when its prices were outpriced by usd 350- 400 pmt compared to Brazil and Indonesian pepper and the selling centers were trading pepper much below the prices indicated in the terminal market Cochin. Its nothing but speculation let loose and uncontrolled by the market watch dog FMC" alleged the Wyanad Pepper Traders association. "Traders like us who have been making a living only on pepper trade for genrations cant do any biz and like farmer suicides you will know hear pepper trader suicide if the speculators are not properly controlled by the FMC" they said. "They are giving a privillege to handful few who had a super chance to cover their reqirements decently till the end of the year with the 120 days re export days adjusted very rightly with the timely purchases from other countries" .
In Vietnam local players were speculating on physical stocks along with two known Dutch companies who are spreading very bullish reports to have high priced sales for long strings for later positions according to our european trade sources and Indonesia has been an hindrance and they acted in Lampung market also picking up substantial quantities of asta rejections rechristened as Indoneian 500 g/l pepper and some good quantity asta along with indian value added industries making the indonesians rising their asking prices. Brazil is closely monitoring Indonesian activities and orchestrating their sales in a small way as the harvest has not gained momentom yet and Indonesian harvest will be over by the month end or early september. Sri lanka who sold as low as usd 3550 pmt has raised their prices to usd 3700 cfr cochin seeing the indian exchanges move..
Prices reported last night in newyork by various origins were India usd 4600 pmt c& f Indonesia usd 4250 pmt c% f Vietnam asta usd 4650 pmt c& f ( with limited sellers) Vietnam 500 gram 3970 fob hcmc vietnam 550 grams usd 4200 pmt Brazil B2 usd 3800 pmt Brazil B1 usd 3900 fob Belem and BASTA usd 4000 fob belem with no trades reported as USA buyers still on watch and wait mode and lately covering on big dips and keeping sidelined from markets and not carried away by the big moves in Vietnam and Brazil as they have Brazil and Indonesia as their most favoured sellers currently.
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