Pepper Prices Soar, Supply Squeez and Demand High

Pepper prices soar to higher while pepper march futures high of Rs 37,680. Pepper supply remain squeezed, domestic and overseas pepper demand high.

Pepper March futures hit a high of Rs 37,680 before retreating to Rs 36,855 per quintal on estimated drop in production at 43000 tons in 2011-12 compared to 48,000 tons in 2010-11while turmeric prices closed almost one percent lower at Rs 4698 per quintal on rising supply. According to reports pepper growers are holding stocks in anticipation of further gains in prices.

Pepper supplies remain squeezed while domestic and overseas pepper demand continue to be high. New crop arrivals in India have so far been negligible despite the ongoing harvesting in the peak time of the season in Kerala, the major producer of spice.
Cumin seed, or jeera futures fell 7 percent in February but as traders continued to cover short positions, March contract prices rose marginally on Monday to Rs 13,870 per 100 kg although rising supplies from the new season crop and estimates of higher output restricted the gains.

Pepper futures to extend uptrend on Monday on the back of firm demand along with thin supply. Limited stocks in the physical markets also could support the uptrend.

Fresh arrivals from Vietnam have commenced but they are arriving in small quantity.Overseas buyers are following a wait and watch stance and are absent from the market.

Special margin of 10% including Special Cash margin of 5% on the long side of all running contracts has been withdrawn with effect from beginning of the day Tuesday, February 21, 2012.

In NCDEX pepper March contract on Monday opened at Rs.36530 and is trading at Rs.36890, up by 1.84% against the previous close.

According to an analyst with Angel Commodities, pepper prices in the intraday are expected to remain firm owing to demand from the north Indian stockists amidst lower arrivals. In the short term (February to March) prices are likely to take cues from fresh arrivals in the domestic market as well as in Vietnam.

According to Spices Board of India, exports of pepper during April 2011- December 2011 stood at 19,500 tonnes as compared to 13,350 tonnes in 2010-11, rise of 46%.

According to International Pepper Community (IPC) exports of black pepper during January to October 2011 from six major exporting countries (Brazil, India, Indonesia, Malaysia, Vietnam and Sri Lanka) was around 2.04 lakh tonnes a decline of 4.6% as compared to 2.14 lakh tonne in the same period last year.

Turmeric pepper production in Andhra Pradesh, the leading producer of the spice In India may gain 36 percent on year to 83,000 tonnes in 2012 due to increase in acreage, according to government officials. Turmeric arrivals from the new crop have started in the spot markets.

Category: india pepper market 2012, Pepper, pepper commodity, pepper demand, pepper futures 2012, pepper prices, pepper supply