Spot Pepper prices continued to trade on positive note due to lower arrivals at the domestic on Wednesday. Futures witnessed mixed trend throughout the day and settled 0.48% down on Wednesday.
Lower stocks with Vietnam and Indonesia, the major suppliers of pepper might control prices from falling sharply.
Vietnam has reportedly sold 1.12 lakh tonnes of pepper from January to September 2011 a rise of 14% as compared to previous year. Carryover stocks of pepper with Vietnam till commencement of fresh arrivals in March are projected to be around 15,000 tonnes. (Source: Pepper Trade Board)
Indian parity in the international market was at $7,700 a tonne and remained competitive and was attracting overseas orders while Vietnam was quoting its pepper at $7,325 per tonne (f.o.b). Indonesian Asta grade is being quoted at 8550 per tonne for October and November shipment.
Exports from the major countries
According to Spices Board of India, exports of pepper during April 2011- August 2011 stood at 8,750 tonnes as compared to 7,800 tonnes in 2010- 11, rise of 12%.
According to International Pepper Community (IPC) exports of black pepper during January to September 2011 export of pepper from six major exporting countries (Brazil, India, Indonesia, Malaysia, Vietnam and Sri Lanka) was around 188,000 mt, 4% lower from the corresponding period of 195,000 mt. Exports from Brazil, Indonesia, Malaysia and Sri Lanka have decreased, while exports from Vietnam and India increased.
Sharp fall of 38% in pepper exports was witnessed in Indonesia during above period. Exports stood at 26,300 tonnes as compared to 42,082 tonnes in the last year.
Production and Arrivals
Arrivals of pepper in the domestic mandi on Wednesday stood at 10 tonnes against offtakes of 15tonnes while arrivals on Tuesday stood at 20 tonnes against offtakes of 23 tonnes.
Production of pepper in India in 2010-11 is projected to be 48 thousand tonnes (according to the Spices Board) as compared to 50 thousand tonnes last year. However, there are expectations that this estimate would be lowered further on account of the disease attacks and erratic rainfall in the major growing areas particularly Kerala and Karnataka.
According to IPC global output of Pepper for 2011 is expected to decline by 6,500 tonnes to 3.10 lakh tonnes. Vietnam production of the spice is expected to be same as that of previous year to 1.10 lakh tonnes. Pepper production in Brazil stood around 27,000 tonnes in 2010-11 as compared to 35,000 tonnes the previous year.
Courtesy: Angel Commodities
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