Pepper Commodity prices Down Adequately for Season

Commodities pepper out priced in global trade and imports are also on the higher side, fundamentals don't support the current pepper price run. Pepper market is reacting to liquidation of stocks by Indonesian sellers and will not sustain the slide. Supplies are tight and market will remain firm. With major pepper buyers adequately stocked for the season, traders said pepper prices might now come down from their current highs.

Indian pepper prices are held high by exchanges and farmers who are reluctant to sell have enough money from other cash crops and can hold on.However, Sudha Acharya of Kotak Commodities is not convinced about the theory that pepper prices would ease in the coming weeks, she believes that demand, both global and domestic is robust.

Vietnam has sold more than 1 lakh tonne of pepper in the first eight months of this year. It is reported that they have more than 20,000 tonne of pepper left to sell in the current season, US and Europe normally buy pepper during August-September period for the festival season. US buyers are long having procured substantially from the Indonesian market. During January-July period, US has imported 29,864 tonne of pepper, which is the second highest volume in five years. The key player in the coming days would be Vietnam. If they have sufficient stocks and decide to sell before their new crop comes around January 2011, the market would take a dive.