Brazil Sells Big Contracts Of Pepper At Strong Prices

During this week Brazil sold around 1,000 mt of ASTA and B1 grades, most of it to big European and American buyers, although Mexico and Gulf where among the destinations too, latest updates from the Brazilian Pepper Trade Board.

Prices ranged between 4,900 and 5,050 FOB. During all this time media reported that big buyers in USA and Europe were on stand-by waiting for Vietnam new crop in an expectation that prices will decrease by the end of February. However differently of what was heavily advised they accepted Brazilian prices and took a big chunk of remaining Brazilian 2010 crop which now is very much reduced.

For the Brazilian sellers and growers, this move will reinforce their idea of market prices around 5,000 per ton. However, it appears that the market is possibly covered for the next 30-45 days, which might show another period of lack of purchasing interest, when vietnamien new crop will reach the market, and may force the vietnamien prices down if vietnamien traders buy this pill.

It might be the reason also why Indian s exchanges dramatically switched its bearish path for bullish this afternoon after several days of continuous fall.

The traditional American dealer, Sayia wrote: “The curtain is closing for trading in the Pacific Rim areas. Between Chinese New Year and Tet holidays, several origins are effectively closed until mid-February. Offers are steady at source going into this critical period. Sellers are not discounting forwards. Global activity has been brisk as coffers are thin in major consuming countries and pipelines empty as buying has been pushed off. Vietnam's local levels remain strong.

Farmers appear in no rush to market their upcoming production. Associated commodities like rubber and coffee have all performed well. With large 2010 exports, new crop is likely to be doled out slowly. India has softened slightly bringing it more in line with Indonesia. Late Malabar pickings however have prevented any serious selling pressure in Cochin. Indonesia is pretty much sold out. Lampong shows only limited quantities for nearby months.

Fresh supplies will only come about when Vietnam reopens. Stocks here are tight. Recent sales have trimmed trading inventories. Any spike in demand before source reopens will shoot prices higher.

(Source: http://www.indiainfoline.com/Markets/News/Commodities-Buzz-Brazil-Sells-Big-Contracts-Of-Pepper-At-Strong-Prices/3513205311)