Commodity Pepper Future Price Fall, Trading October 2011 Down

Commodity pepper futures prices in India have fallen this week on profit taking at higher levels, however, fundamentals continue to be supportive of the spice, according to analysts.

At National Commodity and Derivatives Exchange of India (NCDEX), Pepper October contract has fallen 2.30% to Rs 35390 on Friday while shrinking supplies and depleting stocks are providing firm support to prices. The October contract has gained 24.46% since inception in April.

Pepper is supported by approaching festival in India, winter season demand, discounted prices of Indian origin in the international market. Some analysts have forecasted prices to surge to Rs 38,000 per 100 kg in the short-term.

India, the third largest producer of Pepper is expected to witness a decline in annual production to 48,000 tonnes from 50,000 tonnes last year, while global production is expected to slump by 17,000 tonnes according to International Pepper Community

In Saturday morning trade, Pepper October contract is trading 0.59% down at Rs 35600 after opening.