MUMBAI (Commodity Online): Sentiments remained slight weak for Pepper as fall in International market rates kept trend bearish here. Lower export rates in Vietnam and Indonesia have adversely affected the Indian market sentiments.

There are expectations of some more falls in the short term before exports pick up. Lower stocks and expected fall in production too are however expected to have bullish impact on the overall market sentiments.

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 on the lower side. Vietnam stated to be releasing its remaining stocks slowly.

A rise in Dollar vs Re has been favorable on the 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-June have fallen by 5% to 4,650 MT in 2010 from 4,900 MT in 2009.

Courtesy: Religare Commodities

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