The global pepper market opened on a pessimistic note this week on account of speculative trading in India and Vietnam. The prices of Asta grade variety of pepper fell by $100-150 a tonne. Vietnam topped the price list quoting $3,150 and $2,750 for 500 gm/litre and $2,950 for 550 gm/litre, while India quoted $3,100 a tonne for the Asta grade. Last Friday, both India and Vietnam quoted $3,250 a tonne.
The drop in demand and the absence of enquiry from overseas markets caused the sudden shift in the global prices.
Asta grade pepper is available in Indonesia at a price tag of $2,950 and $2,850 a tonne in Brazil. The only factor backing the bull trend was the low stock in Vietnam and India. It is estimated that Vietnam had shipped around 100,000 tonnes and the stock is rather weak there. The next crop is expected to arrive only by January 2010. So, Vietnam is not in hurry to clear the stock and is moving in line with futures counters of India.
Indian exporters are also having negligible demand from overseas traders. Hence, they have cut the price by $150 a tonne today. Even at this price, the demand is not picking up, says a leading exporter. The much awaited local demand on account of winter season is also not there in the Indian market. So it is the speculative movement in futures counters that determines an unstable condition in prices.