NW18W: Pepper seen up on firm demand, tight supply

KOCHI – The pepper prices in spot and futures markets firm up in next seven day on demand at low-levels amid tight supply due to growers holding back stocks hoping further rise in price, dealers said today.

Expectations of improved demand from exporters amid tight supply in physical markets may keep pepper prices up in coming days, dealers said.

Sections of dealers are of the view that the benchmark March contracts on National Commodity and Derivatives Exchange may reach the levels of 13,500-13,600 rupees per 100 kg shortly. The delay in fresh supply in Vietnam, world’s leading producer of the spice, may also aid the uptrend here, they added.

According to trade circles here, fresh supply in Vietnam is likely to gather pace only by the end of March. Buyers from US and Europe will be interested in Indian ASTA grade pepper at the prevailing rate of $2,900 a tn, said a city-based exporter.

Sellers in Vietnam are not having enough stocks is evident from the fact that most of them are not taking orders for the ready supply of ASTA grade pepper, he added.Most Vietnamese sellers are taking orders for the supply of ASTA grade only from the last week of March or early April, he added. Currently, overseas buyers who are in real need of the spice are coming to India, he said.

Fresh supply in spot markets meanwhile continued to be at low-levels as most growers are holding back stocks due to the prevailing rates, dealers said. Sellers are also holding back stocks hoping that the prices have already bottomed out and revival is on the way, said a trader.

In the spot counter of India Pepper and Spice Trade Association, the price of garbled pepper stayed with little change in the range of 13,000 rupees 100 kg Tuesday.

NewsWire18