NCDEX Pepper Slumps On Short Selling .

MUMBAI (Commodity Online): NCDEX Black pepper futures dropped more than Rs 1,200 or four percent from the last session close lead by short selling on weak export demand.

The benchmark July contract moved in the range of Rs 30524-29208 and ended the session lower at Rs 29208,down by Rs 1217 or 4% over the last close. The open interest added 1.60% to 7983 tonnes. All the far month futures dipped 4% and the volume gained sharply.

As per the latest updates from the Vietnam Pepper Association, Black pepper type 550 Gr / l-Asta price of $ 6,000 per tonne, 580 Gr / l-Asta price of $ 6,400 per tonne ton and white pepper 630 Gr of DW / l price of $ 7,950 per tonne ton (FOB). While the price of exports to the U.S. market also increased slightly, Indonesia's target price of BG1-Asta at $ 6,450 per tonne ton and the price of BG2-Asta at $ 6,150 per tonne ton, Brazil ASTA target price at $ 6,300 per tonne tons.India targets special type MG1 priced at $ 6,800 / tonne (C & F), the price is very competitive and almost constant over several months now.

The supply of pepper on the Indian market is quite abundant at this time because of high import. In the period March to May 5 / 2011, India imported 4,500 tonnes of pepper, only less than 100 tons of exports. India imports from Vietnam - where the price then of about 400 dollars cheaper per ton than the price in India (then up to 6800 dollars / ton).

Forecast upcoming pepper prices will drop again, as Indonesia and Brazil into the harvest season - July to August. It is not clear pillow case reserves of Indonesia is, but exports from these countries increased over the past years in a row.

In 2009 Indonesia exported 50,642 tonnes of pepper, to export 63,000 tons in 2010. If this trend continues, the supply on the world market will be close enough. Asia Pulse, citing the Indian traders for their pepper production this year will be about 45,000 tonnes, 48,000 tonnes lower than the Spices Board of India forecast. Production last year of India is 53,000 tons. Pepper consumption in India this year to about 48,000 tons, is also nearly full after the import volume from the beginning of the year.

Vietnam's pepper exports, according to the Ministry of Agriculture and Rural Development, to 15,000 tons in May, bringing the total exports in the five months of this year to 56,000 tons, valued at $ 293 million, up 60 % over the same period last year. U.S. and Germany are the two largest export markets of Vietnam from the beginning of this year, accounting for 27%. Estimated exports in 2011 will double compared to last year and reached 766 million dollars.

International Pepper Committee (IPC) in November last year predicted global pepper production this year will be less than 6,500 tons last year, only 309,000 tons, and the market will lack 45,000 tons. The new report has yet been announced. Indonesia upcoming season of harvest is very important to price trends in the remaining months of this year.

Source : commodityonline.com