Thursday, June 30, 2011
Exports of black pepper may rise on low prices
Black pepper exporters are likely to benefit in the coming days, as local prices of the commodity are on par with the international ones. Domestic prices softened by $350-400 a tonne and were at $6,350 a tonne. This has attracted overseas buyers and is likely to increase exports.
Vietnam offers Asta grade pepper at $6,250 a tonne, since a majority of its crop (around 72,000 tonnes) has been shipped. So, India might have the chance to fill in. According to exporters, India is now having a ‘reasonable price’ compared with pepper from other origins. For July shipments, Indonesia quotes $6,650 and the indicative price of Brazil is $6,300 a tonne.
Futures counters, which were trading at a hefty premium, crashed 10 per cent in the last four trading sessions. India was no way near the Vietnam counters till last week. Although futures crashed by $700 a tonne, the fall in spot was only $250. India, which was cut off from the rest of the origins, is slowly coming in line but exporters are not sure for how long it will last.
The Indian Mg-1 Asta quality on FoB-basis Kochi for June-July shipments is available at $6,350 a tonne and this looks interesting for overseas buyers, who have been neglecting India for the last three-four months.
There have been rumours about the rejection of Indian and Vietnamese pepper in many countries, especially in the US. These were used by some speculators to pull down Indian futures.
The crop in Indonesia this year will be low, according to various reports, and their Asta grade is the most expensive pepper, with a price tag of $6,650 a tonne.
Source: http://www.business-standard.com/india/news/exportsblack-pepper-may-riselow-prices/441102/
Pepper futures gain 0.79 pc on fresh buying
New Delhi, Jun 30 (PTI) Pepper prices rose by 0.79 per cent to Rs 27,500 per quintal in futures trade today on emergence of buying by traders following improved demand in spot markets.
At the National Commodity and Derivatives Exchange, pepper for delivery in July rose by Rs 216, or 0.79 per cent, to Rs 27,500 per quintal, with an open interest of 7,875 lots.
Likewise, the spice for delivery in August moved up by Rs 160, or 0.58 per cent, to Rs 27,860 per quintal, with an open interest of 2,859 lots.
Market analysts said fresh buying by traders on improved demand in the spot market mainly pushed up pepper futures prices.
Source: http://in.news.yahoo.com/pepper-futures-gain-0-79-pc-fresh-buying-075400485.html
Monday, May 30, 2011
Pepper declines on weak domestic demand
Lacklustre trades at the domestic mandi led spot prices of pepper and futures to trade 2.65% and 4.45% lower w-w. Reports of commencement of fresh arrivals from Indonesia and expectations that the prices in the international market of major origins particularly Vietnam and Indonesia might be quoted at lower rates will pressurize prices.
In the month of April 2011 pepper prices in terms of fob highest rise was witnessed in Vietnam and Brazil origins. Prices rose by 22% and 21% respectively while that of India and Lampung it increased by 15% each, Malaysia by 13% and Srilanka by 4%.
Exports from the major countries
According to Spices Board of India exports of pepper from India during April 2010- February 2011 stood at 16,600 tonnes as compared to 18,425 tonnes in 2009-10, decline of 10%.
According to International Pepper Community (IPC) exports of black pepper from Indonesia during January to April 2011stood at 10,821 Mt (7025), increase of 54% as compared to previous year. Exports of Black pepper from Vietnam during January to March 2011stood at 25,000 MT, decline of 10% as compared to previous year.
According to General Statistics Office of Vietnam, the country has exported around 42,000 tonnes of Pepper during January to April 2011.
Production and Arrivals
Arrivals of pepper in the domestic mandi are in the range of 16-25 MT while are in the range of 15-20 Mt since couple of weeks.
Production of pepper in India in 2010-11 is projected to be 48 thousand tonnes (according to the Spices Board) as compared to 50 thousand tonnes last year. However, there are expectations that this estimate would be lowered further on account of the disease attacks and erratic rainfall in the major growing areas particularly Kerala and Karnataka.
According to International Pepper Community (IPC) global output of Pepper for 2011 is expected to decline by 6,500 tonnes to 3.10 lakh tonnes. Vietnam production of the spice is expected to be same as that of previous year to 1.10 lakh tonnes. Pepper production in Brazil stood around 27,000 tonnes in 2010-11 as compared to 35,000 tonnes the previous year.
Outlook
Pepper prices are likely to trade sideways to down due to lackluster trades at the domestic mandis. In the short term (till mid of June) prices might be pressurized owing to fresh arrivals of pepper from Indonesia. Domestic prices will also take cues from pepper prices of Vietnam in the international market.
In the medium to long term (June end onwards), price trend will depend on pepper production in Indonesia and Brazil and demand from the overseas and domestic buyers.
Courtesy: Angel Commodities
Sunday, May 22, 2011
Commodity Trends: Pepper uptrend continues, wheat also gains
Pepper continues to steal the show in agri-commodities with uptrend in prices continuing this week on limited supply from fresh crop. Turmeric futures regained at the end of the week as traders chose to cover short positions after the recent fall. Global wheat prices gained on USDA crop forecasts which estimates fall in output due to drought conditions.
Pepper
Pepper futures rose this week on the back of limited supply from the fresh crop and on depleted stocks with other major producing countries. Lower stocks with other major producing countries also supported buying. Vietnam is the largest pepper producing country in the world.
At Kochi on Friday pepper rose 207 rupees to 29,540 rupees per 100 kg. The most active June futures contract at National Commodity and Derivatives Exchange (NCDEX) closed at Rs.30391 per quintal, higher by 0.59 per cent. July contract opened this week at Rs.30300 per 100 Kg and closed at Rs.30690 per quintal, up by 0.36 per cent.
During April-February 2010-11, a total quantity of 16,600 MT of pepper valued Rs.334.62 crores was exported as against 18,425 MT valued Rs.293.00 crores of last year. The unit value of pepper has increased from Rs.159.02 per kg in 2009-10 to Rs.201.58 per kg during 2010-11.
As per the latest release from the Spices Board of India, Exports of spices and spices products from India have registered an increase of four per cent in volume and 19 per cent in terms of value during April-February 2010-11, as per the latest release from the Spices Board of India. In dollar terms, the rise in exports is 24 per cent.
According to IPC’s projection, pepper output in India is estimated near 48000 tons compared with 50,000 in the previous year.
Chana
Chana continued uptrend this week on firm demand from the millers and on reduced arrivals from the market.
In Delhi on Friday chana prices rose 39 rupees to 2,405 rupees per 100 kg. At NCDEX June delivery contract opened at Rs 2455 per 10 MT and closed at Rs 2512, higher by 2.32 % whereas Chana July contract opened at Rs.2525 and ended at Rs.2590, up by 2.57%.
According to the report released by the government of New South Wales (Australia) acreage under chickpeas during 2011-12 is forecasted to be lower.
India's weather office sees on schedule monsoon retreat India’s June-September monsoon rains are expected to withdraw on schedule, the chief of the weather office said , unlike last year when late end-season rains hit Kharif Pulses output and delayed Rabi sowing.
This year India is not expected to witness late withdrawal of rains unlike last year which was an abnormal one. There were heavy rains in Augusts September and withdrawal too was late, according to general of state-run India Meteorological Department.
A timely withdrawal of the monsoon, which delivers more than 70 percent of annual rainfall, will boost pulses output.
Soybean
Soybean gained this week tracking firm global cues and on falling arrivals in the physical market. Rising oil meal exports also supported the gain.
In global markets also soybean rose on bets that U.S. planting delays will persist because of more rain next week in the Midwest. Bad weather in the U.S is supporting the global oilseed market. Excessive wet weather and flooding in the eastern U.S. Midwest is delaying corn and soybean plantings.
On Friday, soybean futures for July delivery rose 0.75 cent to settle at $13.8025 a bushel on the CBOT. Prices were up 3.8 percent this week. The oilseed has climbed 46 percent in the past year on record Chinese purchases.
On Friday, in the Indore spot market, soybean eased by 6 rupees to 2,387 rupees per 100 kg. At Sri Ganganagar in Rajasthan, rapeseed rose by 28 rupees to 2,765 rupees per 100 kg.
In futures market, NCDEX June soybean prices gained from Rs.2390 to Rs 2401, an increase of 0.46 per cent while July Soybean prices settled down by 0.16 % from Rs 2434 to Rs.2430. June soy oil prices rose from Rs 633.90 to Rs 641.35 per 10 MT, higher by 1.17.
The soy meal exports during April 2011 have declined which might limit the gains. However, the USDA crop planting report has revealed the corn planting has slowed down across the central and western Corn Belt.
Turmeric
Turmeric futures regained at the end of the week as traders chose to cover short positions after the recent fall. In the mid week turmeric fell due to rising supplies from the new season crop and weak demand.
In Erode spot market also turmeric rose this weekend. Turmeric had decreased steeply by about Rs 1,700 a quintal in the last few days. The sale of both varieties of turmeric was also encouraging. There would be no major increase for the commodity in near future, but there would be a price fluctuation from Rs 200 to Rs 500 a quintal.
At the Erode Turmeric Merchants Association, the finger variety was sold at Rs 6,174-8,161 a quintal and the root variety, Rs 6,204-7,289 on Friday.
The most active June futures contract at National Commodity and Derivatives Exchange (NCDEX) closed at Rs.8212 per quintal, a decline of 2.53 per cent. July contract opened this week at Rs.8422 per 100 Kg and closed at Rs.8180 per quintal, down by 2.87 per cent.
Turmeric production for this year has been estimated higher because of increase in the cultivation area. Turmeric production in the year 2010-11 is estimated at 69 lakh bags (1 bag= 70 Kgs) compared to 48 lakh bags during the previous year.
According to India’s Spices Board, exports of Turmeric from India during April 2010- February 2011 stood at 42,500 tonnes as compared to 46,575 tonnes in 2009-10, a decline of 9%.
Wheat
Wheat futures fell this week in global and domestic markets. Wheat fell at the weekend in CBOT as drought cut output in Russia and eroded crops in the U.S. Great Plains.
On Friday wheat futures for July delivery fell 5.5 cents, or 0.7 percent, to $8.065 a bushel in Chicago. This week, prices were up 11 percent.
Drought conditions have expanded across Kansas and are threatening the state’s winter-wheat crop, the largest in the U.S., according to the National Drought Mitigation Center.
As of May 15, 55 percent of winter wheat in Kansas was rated poor or very poor by the U.S. Department of Agriculture. The National Weather Service estimates rainfall in the past 30 days was less than half of normal in much of those three states.
Kansas, Texas and Oklahoma produced 608.4 million bushels of wheat last year, or 28 percent of the total U.S. supply, according to the USDA. This year, the USDA expects production to drop 63 percent in Texas, 38 percent in Oklahoma and 27 percent in Kansas, compared with 2010.
In India, at NCDEX June delivery contract opened at Rs 1233.80 per 10 MT and closed at Rs 1226, fell by 0.63 % whereas Wheat July contract opened at Rs.1259 and ended at Rs.1246.80, down by 0.96%.
The International Grains Council lowered last month its outlook on global wheat production in the 2011-2012 season by 1 million tons to 672 million metric tons, matching global demand, because of "less than ideal conditions for some crops" in the U.S., the European Union and China. Further losses to the crop may cause production to lag behind demand for a second straight year, draining inventories.
NCDEX Pepper edges higher on export demand
MUMBAI (Commodity Online): Pepper futures traded up on Friday due to fresh buying by the traders and on rising demand from the overseas market.
At NCDEX Pepper June contract is currently trading at Rs.30386 per 100 Kg, higher by 1.37 per cent against the previous close. In the earlier sessions the contract traded at a range of Rs.29870-30770 per 100 Kg. Open interest of the contract is 15223 lots as of now.
Restricted supplies from producing regions and firming trend in futures trade, also supported the rise in prices. Black pepper prices rose by Rs 200 to settle at Rs 28,800-30,000 per quintal.
In absence of news from other origins like Brazil and Indonesia might limit the gains. Indian pepper in global market is quoted at $6900 per mt. As per trade sources, trend is also firm in Vietnam as they have sold around 50% of their production.
Vietnam pepper planters are holding back their produce anticipating further rise in the prices. As per derivative analysis, open interest in June contract has increased while prices and volumes have declined a bit. This indicates market is vulnerable to a smart recovery however; overall trend is likely to remain volatile.
Tuesday, May 17, 2011
Pepper price at record high in Kerala market
Kottayam, May 17 (PTI) Continuing its upward march, price of black pepper scaled a new high for the decade at Rs 292 per kg in the wholesale market in Iddukki district, a major producer of the food additive in the country.
The ungarbled pepper touched Rs 284 a kg while garbled variety closed at Rs 292 per kg yesterday and traders attributed supply shortage for the firming up of the price.
The previous highest pepper price was Rs 275 a kg recorded on November 1, 1999, traders said.
"If this trend continues, the price will soon touch Rs 300 per kg mark very soon," traders said.
They also said predictions of a slump in production this year by speculators was another reason for the sudden jump in the price of pepper.
In Kerala, pepper is mainly cultivated in Idukki and Wayanad district but farmers of late had been turning to other cash crops including rubber, cloves and cardamom due to un-remunerative price of pepper in the past several years.
Price of pepper was only Rs 161.17 per kg a year ago.
The area of cultivation had dropped steeply in Kerala from 2,37,998 hectares in 2005 to 1,72,764 hectares, sources said.
"But now farmers are gradually showing interest in pepper cultivation," traders said. Production was slightly higher in Tamil Nadu and Karnataka compared to Kerala, trade sources said.
(Source: http://news.in.msn.com/business/article.aspx?cp-documentid=5164635)
Saturday, May 14, 2011
Pepper Ends Steady In Kochi Mandi
According to the latest updates from India Pepper and Spice Trade Association (IPSTA), Kochi, Pepper arrivals in Kochi Mandi slumped to 200 quintals on Saturday as on 14th May 2011 from 340 quintals, meanwhile offtakes increased to 400 quintals from 310 quintals as on Friday.
Black Pepper for ready delivery in Kochi, closed Saturday's trading session (as on 14th May 2011) on steady note with MG-1 at Rs. 29,200 and Un-Garbled pepper also ended steady at Rs. 28,400 per 100 kg.
Saturday, May 7, 2011
NCDEX Futures: Pepper recovers, Cotton drops
AHMEDABAD (Commodity Online): Pepper futures recovered Friday on a squeeze in daily supplies and lower stocks. Diminishing stocks with other pepper producing countries also supported the uptrend.
At NCDEX Pepper May contract closed at Rs.28381 after witnessing a high of 28744 and a low of Rs.27836.
Vietnam had exported 25128 tons in first quarter but it is less by 11 percent compared with last year figures. In Vietnam the local prices traded near $ 5700 per ton and pepper prices had increased 66 percent compared with the prices at the beginning of the year.
As per trade sources, International prices of MG1 traded near $6300 per quintal and widening price spread between Indian and Vietnam prices is expected the affect the price sentiments in short term.
Kapas futures dropped on Friday on aggressive selling by traders in line with weak spot markets sentiment. It closed at Rs.788 witnessing a high of Rs.830 and a low of Rs. 788.
Market analysts said heavy arrivals and sluggish demand in physical markets, mainly pulled down the prices to hit a lower circuit set by the exchange authority to check unwanted volatility.
Jeera futures declined Friday due to sluggish domestic as well as overseas demand and on higher arrivals from the fresh crop.
At NCDEX Jeera May contract closed at Rs.14343 after touching a high of Rs. 14687.00 and a low of Rs.14305.
Buying has declined in jeera because traders are expecting a further fall of 300-400 rupees per 100 kg from the current levels due to the ongoing arrival season.
As per the latest projection by trade sources the total production of jeera in the current season is likely to be around 21 lakh bags (1 bag = 60 kgs) which is three lakh bags less than the earlier projection.
And production in last year was reported at 29 lakh bags. As per media sources, better crop output is expected in Syria and Turkey.
Crude palm oil futures in India declined Friday tracking weak overseas market and on sluggish demand in the physical market. The commodity closed at Rs.510.30 subsequent to touching a high of Rs.511 and a low of Rs.504.70.
Traders said besides weakening trend in overseas markets, subdued demand in the spot market led to the fall in crude palm oil futures prices.
Crude palm oil for the July-delivery contract declined by 1.8% to $1,057 a metric ton on the Malaysia Derivatives Exchange, the lowest since March 24.
(Source: http://www.commodityonline.com/news/Pepper-recovers-Cotton-drops-at-NCDEX-Futures-38810-3-1.html)
Thursday, May 5, 2011
Black Pepper plunges on profit booking
Spot pepper prices continued to trade firm and settled 0.60% higher owing to better arrivals amidst better offtakes on Wednesday.
Futures ended 1.52% lower on account of profit booking by the market participants. Reports that Vietnam; the major producer of the commodity not selling its produce is supporting prices.
Indian pepper prices in the international market are being offered at $6,700-$6,800/tonne as compared to $6400-$6500/tonne in the week ended 23rd April 2011. (source: Peppertradeboard)
Exports from the major countries
According to Spices Board of India exports of pepper from India during April 2010- February 2011 stood at 16,600 tonnes as compared to 18,425 tonnes in 2009-10, decline of 10%.
According to International Pepper Community (IPC) export of black pepper from Brazil during January to March 2011stood at 7901 Mt (6911) increase of 14% as compared to previous year. Exports of Black pepper from Vietnam during January to March 2011stood at 25,000 MT, decline of 10% as compared to previous year.
Pepper exports from Indonesia during January to March 2011stood round 6,400 MT as compared to 5,700 MT in the same period previous year.
Import of Pepper in U.S. in 2010 gained by around 7% and stood at 70,469 tonnes as compared to 65,855 tonnes in 2009. Indonesia held its position of being the largest exporter shipping around 5,174 tonnes to U.S. followed by Brazil (11,517), Vietnam (10,241) and India (4,064) tonnes.
Production and Arrivals
Arrivals of pepper in the domestic mandi stood at 30Mt, 10 Mt higher that of Tuesday. Offtakes stood lower at 20 Mt as compared to 40 Mt on Tuesday.
Production of pepper in India in 2010-11 is projected to be 48 thousand tonnes (according to the Spices Board) as compared to 50 thousand tonnes last year. However, there are expectations that this estimate would be lowered further on account of the disease attacks and erratic rainfall in the major growing areas particularly Kerala and Karnataka.
According to International Pepper Community (IPC) global output is expected to decline by 6,500 tonnes as compared to 2010 to 3.10 lakh tonnes. Vietnam production of the spice is expected to be same as that of previous year to 1.10 lakh tonnes. Pepper production in Brazil stood around 27,000 tonnes in 2010-11 as compared to 35,000 tonnes the previous year.
Outlook
Lower supplies both in the domestic as well as in the international coupled with hoarding of Pepper by the Vietnam farmers will help pepper prices to trade firm. Domestic prices will also take cues from pepper prices of Vietnam in the international market.
In the short term (till May), Pepper prices will depend on demand from the overseas and domestic buyers. Prices will also take cues from stocks of pepper with the major producers, pepper prices in the international market of various origins.
In the medium to long term (June onwards), price trend will depend on pepper production in Indonesia and Brazil and demand from the overseas and domestic buyers.
Courtesy: Courtesy: Angel Commodities
Wednesday, May 4, 2011
Coriander tumbles on higher arrivals
Coriander futures edged lower on arrival sentiments. Total production of coriander in 2010-11 is estimated about 90 lakh bags and carry over stocks has been estimated 20 lakh bags.
However other trade sources are projecting much lesser production estimates of 60-65 lakh bags due to lower acreage of cultivation.
Erratic weather condition during the sowing period had decreased the acreage under cultivation. Arrivals usually starts from mid of February and extent till may end.
Courtesy: Geojit Comtrade Limited
Pepper futures down 0.98% on profit-booking
Pepper futures fell further by 0.98% to Rs 30,202 per quintal today amid profit-booking by speculators.
However, squeeze in supply and firm local demand capped the losses.
At the National Commodity and Derivatives Exchange, pepper for delivery in July fell by Rs 299, or 0.98% to Rs 30,202 per quintal, with an open interest of 757 lots.
Similarly, the spice for delivery in June moved down by Rs 264, or 0.88% to Rs 29,721 per quintal, clocking an open interest of 8,437 lots.
The spice for delivery in May declined by Rs 218, or 0.74% to Rs 29,140 per quintal, with an open interest of 8,039 lots. Pepper for delivery in May shot up by nearly 11% during the last fortnight.
Analysts said continued profit-booking by speculators mainly kept the pressure on the pepper futures prices, but strong demand and squeeze in supply limited the losses.
(Source: http://www.business-standard.com/india/news/pepper-futures-down-098profit-booking/133963/&tp=on)
Tuesday, May 3, 2011
Pepper ends up on reduced arrivals
Spot pepper prices continued to trade firm and settled 0.29% higher owing to lower arrivals amidst better offtakes. However, Futures witness long liquidation by the market participants and settled 0.93% lower on Monday. Reports that Vietnam, the major producer of the commodity not selling its produce aggressively is likely to control prices from falling sharply.
Indian pepper prices in the international market are being offered at $6,700-$6,800/tonne as compared to $6400-$6500/tonne in the week ended 23rd April 2011. (Source: Peppertradeboard)
Exports from the major countries
According to Spices Board of India exports of pepper from India during April 2010- February 2011 stood at 16,600 tonnes as compared to 18,425 tonnes in 2009-10, decline of 10%.
According to International Pepper Community (IPC) export of black pepper from Brazil during January to March 2011stood at 7901 Mt (6911) increase of 14% as compared to previous year. Exports of Black pepper from Vietnam during January to March 2011stood at 25,000 MT, decline of 10% as compared to previous year. Pepper exports from Indonesia during January to March 2011stood around 6,400 MT as compared to 5,700 MT in the same period previous year.
Import of Pepper in U.S. in 2010 gained by around 7% and stood at 70,469 tonnes as compared to 65,855 tonnes in 2009. Indonesia held its position of being the largest exporter shipping around 25,174 tonnes to U.S. followed by Brazil (11,517), Vietnam (10,241) and India (4,064) tonnes.
Production and Arrivals
Arrivals of pepper in the domestic mandi stood at 20Mt on Monday lower than Saturday while offtakes stood at 30 MT yesterday.
Production of pepper in India in 2010-11 is projected to be 48 thousand tonnes (according to the Spices Board) as compared to 50 thousand tonnes last year. However, there are expectations that this estimate would be lowered further on account of the disease attacks and erratic rainfall in the major growing areas particularly Kerala and Karnataka.
According to International Pepper Community (IPC) global output is expected to decline by 6,500 tonnes as compared to 2010 to 3.10 lakh tonnes. Vietnam production of the spice is expected to be same as that of previous year to 1.10 lakh tonnes.
Pepper production in Brazil stood around 27,000 tonnes in 2010-11 as compared to 35,000 tonnes the previous year.
Outlook
Pepper prices in the intraday are likely to trade firm on account of lower supplies both in the domestic as well as in the international. Domestic prices will also take cues from pepper prices of Vietnam in the international market.
In the short term short term short term (March), Pepper prices will depend on demand from the overseas and domestic buyers. As the prices of Indian pepper in the international market are at the same levels as that of other major competitors such as Vietnam, Brazil and Indonesia demand from the overseas buyers are likely to be placed in India. This will provide support to the prices.
In the medium to long term medium to long term medium to long term (April onwards), price trend will depend on pepper stocks with Indonesia and demand from the overseas and domestic buyers.
Courtesy: Angel Commodities
Pepper falls on profit booking
Pepper May delivery dropped Rs 291 and settled at Rs 28860/quintal due to profit-taking though a squeeze in daily supplies and local demand restricted the fall.
Profit-taking is seen in pepper but it is not likely to continue for long because overall sentiment is bullish due to limited supply. Supplies have also been poor in the spot market because of almost stagnant production in the last two-three years. Vietnam had exported 25128 tonnes in first quarter but it is less by 11 percent compared with last year figures.
And the cultivation in Vietnam is less by 50000 hectares compared with last year figures. Spot pepper gained 80.5 rupees to 28126.65 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 29240/quintal while low of Rs 28560/quintal.
Now support for the pepper is seen at 28533 and below could see a test of 28207. Resistance is now likely to be seen at 29213, a move above could see prices testing 29567.
Trading Ideas:
Pepper trading range is 28214-29574.
Pepper dropped due to profit-taking though a squeeze in daily supplies and local demand restricted fall
Pepper looks to test support at 28533 and resistance is seen at 29213.
NCDEX accredited warehouses pepper stocks rose by 10 tonnes to 3277 tonnes.
Spot pepper gained 80.5 rupees to 28126.65 rupees per 100 kg in Kochi market.
Courtesy: Kedia Commodities
(Source: http://www.commodityonline.com/futures-trading/tradingtips/Pepper-falls-on-profit-booking-12761.html)
Saturday, April 30, 2011
Pepper up on buying support; tight stocks
New Delhi, Apr 30 (PTI) Black pepper prices rose by Rs 300 per quintal in the national capital today on fresh buying by stockists and exporters amid low stocks due to restricted arrivals from producing belts.
Black pepper prices rose by Rs 300 to conclude at Rs 28,200-28,500 per quintal.
Traders said sentiments turned better following rising domestic and export demand against low stocks in tandem with a firming trend at futures market, helping pepper prices to trade higher in the wholesale kirana market here.
Following are today''s quotations in Rs per quintal:
Ajwain 17,500-23,000, black pepper common 28,200-28,500, betelnut (kg) 110-120, cardamom brown-Jhundiwali (kg) 1,000-1,015, and cardamom brown-Kanchicut (kg) 1,120-1,270.
Cardamom small (kg): Chitridar 850-900, cardamom (colour robin) 900-920, cardamom bold 910-920, cardamom extra (bold) 1,070-1,100 and cloves (kg) 500-550.
(Source: http://in.news.yahoo.com/pepper-buying-support-tight-stocks-085500307.html)
Pepper bounces back on bullish trends
KOCHI, APRIL 29:
Pepper market after witnessing high volatility till the evening ended marginally above the previous day's closing on bullish trends.
The bears' efforts to pull down the market by propagating that the Vietnam market was easier failed and when the real position was known the bulls got activated, took control and pushed the market up.
There were reportedly only limited sellers in Vietnam and they were not said to be ready to lower their prices. In fact, nearly 50 per cent of the Vietnamese new crop has been shipped out at higher prices and hence the farmers are reportedly not interested to sell at lower prices, trade sources told Business Line.
The end users world over are also reportedly not covered fully. They were also not maintaining any inventory because of the high prices and consequent huge investment involved. Hence they have been covering only hand to mouth. Buyers are, in fact, waiting for the prices to ease.
In the futures market, activities were limited as is evident from the volume traded today.
DULL SPOT TRADE
On the spot there was no activity as the State was observing a “hartal” demanding a ban on Endosulfan.
May contract on NCDEX moved up by Rs 144 to close at Rs 28,533 a quintal. June and July went up by Rs 168 and Rs 112 respectively to close at Rs 29,112 and Rs 29,556 a quintal.
Total turn over fell by 5,169 tonnes to close at 8,911 tonnes. Total open interest also fell by 593 tonnes to 16,896 tonnes and yet the market moved up.
May open interest dropped by 706 tonnes to 9,742 tonnes while that of June went up by 163 tonnes to 6,193 tonnes. July declined by 52 tonnes to 711 tonnes.
Spot prices remained unchanged in the absence of activities at Rs 26,900 (ungarbled) and Rs 27,700 (MG 1) a quintal.
Indian parity in the international market remained at $6,750 a tonne (c&f) and nearly in line with other origins, they said.
(Source: http://www.thehindubusinessline.com/markets/commodities/article1978681.ece)
Wednesday, April 27, 2011
Malaysia: Average price of white pepper surges more than 10% to RM21,530 per tonne
KUCHING: Pepper prices are soaring, boosted by the tight supply globally as farmers hold back their stocks in anticipation of higher prices.
The average price of domestic white pepper surged to RM21,530 per tonne on Tuesday, an increase of RM2,030 per tonne, or more than 10%, compared with 2010's highest closing price of RM19,500 per tonne. The price broke the RM20,000 per tonne mark early last month.
White pepper prices had enjoyed a good run and surged by about 27% last year.
The average price of black pepper hit this year's new high of RM13,400 per tonne yesterday, which was up by RM1,300 per tonne or nearly 11% from the closing price of RM12,100 last year. In 2010, black pepper soared by nearly 30%, from RM9,350 per tonne recorded in 2009.
White and black pepper hit their historical highs of RM28,000 and RM16,000 per tonne respectively in 1999.
From those peaks, they nosedived to RM6,500 and RM4,000 per tonne respectively five years later before making a strong recovery in 2006. Malaysian Pepper Board director-general Grunsin Ayom said farmers in India and Brazil, the world's second and fourth largest producer respectively, had been holding back their stocks, hoping to sell at better prices later.
He said some local farmers, who were economically better off, were also waiting to sell their stocks into the price rally.
“As they are in no hurry to sell, this has resulted in a tight supply, thus pushing up the prices further. It is a seller's market. The global supply of coffee, as well as other spices, are also in a tight situation,” he toldStarBiz yesterday.
Grunsin said China, which imported some 1,850 tonnes of pepper from Malaysia last year, was buying more of the commodity this year.
The International Pepper Community (IPC), of which major producing countries are members, has forecast that world production in 2011 would dip by about 2% to 309,950 tonnes, from an estimated 316,380 tonnes harvested last year.
It has projected an estimated global shortfall of some 45,000 tonnes this year.
Grunsin said Vietnam, the world's No. 1 pepper producer, had just harvested between an estimated 90,000 and 100,000 tonnes, which was close to one third of global production.
“Some of these new (harvests) are already in the market,” he noted. Asked if the current price uptrend could continue or be sustained, he replied: “That is anyone's guess.”
Pepper is increasingly used as an ingredient in food processing, and domestic consumption had gone up steadily over the years.
Malaysia, the world's fifth largest pepper producer, exported an estimated 14,040 tonnes worth RM190mil last year, up from 13,122 tonnes valued at RM156mil in 2009.
There are more than 14,100 ha of pepper farms in Malaysia, of which 14,000 ha are in Sarawak. The other pepper-producing states are Johor and Sabah.
(Source: http://biz.thestar.com.my/news/story.asp?file=/2011/4/28/business/8557076&sec=business)
Pepper prices hit new high of R278
Kochi: The pepper market looks bullish, with prices surging ahead on tight supply. Traders and analysts are now expecting prices to cross R300 per kg with global supply straitened as Vietnam holds on to its stocks. Speculative elements in the Indian exchanges are also spicing up the rally.
On Wednesday, the spot price at the physical market stood at R278 per kg against R267 per kg on Monday. The earlier highest price recorded in the country was R265 per kg, in 1999. According to the database of the Kerala Agricultural University, farm level prices were at its highest level during October 1999, having touched R247 per kg.
Faiyaz Hudani at Kotak Commodity Services feels that the market would remain firm on lower supply. “Lower inventory with all producers and traders is a major reason for the firm market. Crop is also on the lower side,” he said.
“Vietnamese are holding back black pepper and quoting aggressively for the white pepper. Prices are very high at the moment,” said P Nandakumar, a trade consultant from Kochi. He feels that the prices would take a cue from the Indonesian crop, due to come in July.
Hudani feels that the crop arrivals in Indonesia and Brazil would not make much difference as reports suggest lower crop in both countries. “Weather conditions in Indonesia re not conducive for pepper and we expect lower crop. Similarly, in Brazil the pepper crop would be less on less acreage,” he said.
K Satheesh Babu of the Agricultural Market Intelligence Centre of the Kerala Agricultural University estimates prices to remain firm and move to new records. “We had forecast some months back that the market would surge ahead in the second part of the year. Prices are likely to cross R300 per kg due to lower availability,” he said. He does not believe that the market would ease on new crop arrivals in Indonesia and Brazil.
(Source: http://www.financialexpress.com/news/pepper-prices-hit-new-high-of-r278/782592/0)
Tuesday, April 26, 2011
Pepper rises on lower production estimates
Pepper futures continued to escalate on strong price momentum in all major producing regions due to supply deficit.
According to IPC, local prices in Brazil, Vietnam and Lampung had increased approximately from 10 to 13 percent. As per media sources, Vietnam pepper is expected around 1.10 lakh tonnes.
However more clarity about the output estimates will materialize only in near future. International market participants are eagerly watching Vietnam market developments since Vietnam crop has to meet majority of the overseas demand.
Pepper production in other region like Brazil and malayisia is expected to be lower due to adverse weather condition.
Arrival season in Malaysia is from April to July, whereas arrival season in Brazil will be usually from Aug to November. Spot price traded near Rs 27300 per quintal.
Courtesy: Geojit Comtrade Limited
Pepper, turmeric rise on low stocks
Black pepper and turmeric prices rose up to Rs 500 per quintal in the national capital today on fresh buying by stockists and exporters amid low stocks.
Restricted arrivals from producing belts also put pressure on the prices.
Black pepper prices rose further by Rs 500 to conclude at Rs 27,800-28,000 per quintal on reports of lower production, firm international rates, and improved domestic and export demand.
Turmeric prices also traded higher at Rs 12,000-16,700 against previous closing of Rs 11,800-16,500 per quintal.
Traders said sentiments turned better following rising domestic and export demand against low stocks, in tandem with a firming trend at futures market, helping pepper and turmeric prices to trade higher.
Following are today's quotations in Rs per quintal:
Ajwain 17,000-23,000, black pepper common 27,800-28,000, betelnut (kg) 110-120, cardamom brown-Jhundiwali (kg) 1,020-1,040, and cardamom brown-Kanchicut (kg) 1,150-1,300
Cardamom small (kg): Chitridar 870-930, cardamom (colour robin) 920-940, cardamom bold 930-950, cardamom extra (bold) 1,110-1,130 and cloves (kg) 520-570
Chirounji (new) (kg) Rs 450-500 Dry mango (raipur) Rs 9,000-11,000 Dhania Rs 6,000-10,000 Dry ginger Rs 17,500-22,000 Kalaunji Rs 9,000-10,000 Mace-Red (kg) Rs 1,800-1,900 Mace-Yellow (kg) Rs 1,650-1,750
Methiseed Rs 3,000-4,000 Makhana (kg) Rs 250-300 Nutmeg Rs 720-760 Poppyseed (KG Turkey) Rs 160 Poppyseed (KG MP-RAJ) Rs 170-225 Poppyseed (KG Kashmiri) Rs 175 Red chillies Rs 7,000-13,800
Saffron (kg) Irani Rs 60,000-70,000 Saffron (kg) Kashmiri Rs 90,000-1,15,000 Soanf-bold Rs 10,000-14,000 Turmeric Rs 12,000-16,700 Tamarind Rs 2,900-3,300 Tamarind without seed Rs 5,000-8,000
Tea (kg) Rs 60-210 Watermelon kernel (Kg) Rs 135 Jeera common Rs 15,100-15,200 Jeera best Rs 17,100-17,200
(Source: http://www.business-standard.com/india/news/pepper-turmeric-riselow-stocks/133184/&tp=on)
Monday, April 25, 2011
Pepper gains on extended buying
The pepper futures witnessed huge rally in prices on continued buying on Saturday. From opening itself prices started trading higher on extended buying. Limited availability amid strong demand pushed the prices and active May contract touched new contract high and futures ended the day on positive note.
Outlook
Pepper May futures are projected to trade positive on follow through buying on Monday. Reports of strong demand from gulf buyers are likely to support the prices. However, prices are vulnerable to sharp corrections on profit booking on higher levels later in the day.
Prices quoted by India in international market moved down to $6200-6350 per ton which remained competitive. Vietnam 500 g/l is quoted around $5500 per mt against $5100-5200 per mt previous week.
As per trade sources, Tight availability at domestic spot market is likely to support the prices in near term. According to sources, Brazil crop is expected to be down this year with around 10% drop in Lampong crop.
According to derivative analysis, prices and volumes are rising while open interest is falling. Market has a lot of traders initiating from both sides but larger traders may be liquidating into the higher prices.
The market may be vulnerable to large price swings as shorter time frame traders attempt to trade from both sides of the market but liquidating before end of day.
Courtesy: Karvy Commtrade Ltd.
(Source: http://www.commodityonline.com/futures-trading/technical/Pepper-gains-on-extended-buying-23363.html)
