MUMBAI (Commodity Online): Slight firm trend was noted for Pepper as some pickup in demand from North India ahead of Festive season was noted. But higher Indian rates vs International market has affected the exports. Indonesia and Brazil are reportedly quoting lesser rates and this has impacted the Indian prices due to fall in its export demand. Arrivals expected to rise from Indonesia and Brazil in coming days and that pressurized prices. However reports of lower stocks and expected rise in demand at these low levels could support the price and traders are anticipating both exports and domestic demand to rise in coming weeks

Vietnam is having low stocks as per reports - that could result in export demand shifting to India. Brazil and Indonesian crop expected to arrive between July-September is also expected to be lower . Vietnam stated to be releasing its remaining stocks slowly.

Rise in Dollar vs Re has been favorable on export front. Low carryover stock in Brazil and Indonesia is likely to raise exports here.

Reports from IPC predict a fall in Pepper production in 2010 to 2,70,650 tonnes vs 2,79,650 tonnes in 2009.

Reports of farmers shifting to other more profitable crops have affected the production aspects for the crop in India.

Indian traders reportedly holding onto stocks in anticipation of a rise in price in coming months.

Latest reports from Spice Board of India indicates the exports for the period April-July have risen by 2% to 6,750 MT in 2010 from 6,650 MT in 2009.

Courtesy: Religare Commodities

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook