MUMBAI (Commodity Online): Trend remained moderately bearish for Pepper as improved production prospects from Vietnam continued to pressurize price for the commodity. Weak trend in the International markets kept sentiments weak in India also for the commodity.
The futures trend would depend on exports and the production aspect for Vietnam in the coming weeks. Arrivals of new crop can create some pressure on prices. Arrival of crop from Vietnam in the towards Feb –end can also keep sentiments weak and affect export demand adversely.
Start trading in commodities from as low as $50. Join nowThe IPC projections of a rise in Pepper output by 3% in 2010 to ~2.9 lakh tonnes vs 2.82 lakh tonnes last year can also have some bearish impact on the market.
Exporters have been reportedly waiting for some dips to make fresh purchases. Lower stocks in International markets and expected increase in export demand in coming days can provide the support to the prices. Along with that, low stock levels in International markets created apprehensions of export demand shifting to India. Reports of delay in harvesting can tighten the supplies further.
As per latest reports from the Spice Board of India, Indian exports of Pepper fell to 14,750 tonnes during April-Dec 2009 from 19,450 tonnes the same period the previous year.
Courtesy: Religare Commodities
