| The traders here opined that the bearish phase may continue for the next four to five weeks. A number of global factors, including the earlier-than-expected crop from Vietnam and the ensuing Christmas-New Year holiday season, are likely to keep the bearish sentiment alive, the traders added. |
| Harvesting in Vietnam has already started and the fresh crop will hit the global markets by the end of December or by early January. The earlier reports had indicated that the Viatnamese crop would enter the world markets only by February or March. |
| The importers in Europe and the USA, anticipating the early entry of the Vietnamese pepper, have adopted a wait-and-watch stance and are currently not booking orders. The importers have enough stocks sufficient to last for the next couple of months. |
| Global markets will also be subdued by the next week with the ensuing Christmas-New Year celebrations and will become active only after the first week of January. |
| The global market conditions hence do not favour a rally at present and the future course depends on the crop from Vietnam. |
| Both Vietnam and Brazil have dropped their quotes. Vietnam has dropped the prices by $250 a tonne on an average over the last week's prices of $2,200 a tonne for 500 gmiter, $2,320 for 550 gmiter and $2,750 for ASTA. Following low orders from the US importers, Brazil has dropped its prices for BASTA at the $2,325 a tonne level. |
| Meanwhile, reports from Vietnam are estimating a decline of 10 per cent in its pepper output for 2007. An official of the Vietnam Pepper Association said pests and diseases had destroyed crops in many pepper-growing areas. |
| The output in 2006 was about 120,000 tonne, down from 135,000 tonne in 2005 and 140,000 tonne in 2004. Vietnam has a pepper acreage of about 52,500 hectare, with an average output of 2.3 tonne a hectare. |
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