Future Pepper Prices Rise per Quintal as Supply in Spot Market

Future pepper prices rising Rs 126 to Rs 23,918 per quintal today, as speculators enlarged their positions, triggered by lower supplies in the spot market 2011.

At the National Commodity and Derivatives Exchange, pepper for delivery in April rose Rs 126, or 0.53 per cent, to Rs 23,918 per quintal, with an open interest of 387 lots.

Likewise, the spice for delivery in January 2011 gained Rs 22, or 0.10 per cent, to Rs 22,660 per quintal, with a business volume of 598 lots.

Market analysts said tight supplies in physical markets following lower stocks in major producing centres and pick up in demand pushed up pepper prices at futures trade.

Pepper market continues to remain firm with arrivals on the lower side amid good domestic demand. Buyers who were expecting the market to ease due to arrival of new crop are finding it tough to procure pepper even at higher rates. With Vietnam offering only March shipment, the global supply continues to remain tight.

?Pepper is not coming to the market. Normally, the commodity starts arriving from November and gathers speed in January. It is tough to procure even one container of pepper from Kochi,? a trader told FE. Jojan Malayil of Kochi based Bafna Enterprises feels that the market would not ease this year due to arrivals in India and Vietnam.

?Production in India is low and farmers are holding on to the stocks. Demand is good as empty pipelines are being filled,? he added. Arrivals at trading centres are also low and not of good quality.