MUMBAI (Commodity Online): India pepper futures expected to open lower on Monday due to ample supply from the fresh crop amid subdued spot demand.
Demand from the overseas and domestic buyers remains dull currently as buyers remain absent from the market. Fresh arrivals from the domestic will gain momentum at the end of the month (January 2012).
In NCDEX pepper January contract fell 3.05% last week due to weak fundamentals such as weak exports, higher supply.
According to Angel Commodities, pepper prices in the intraday are likely to remain sideways on account of dull demand from the overseas and domestic buyers. In the short term (till January) prices are likely to find support owing to lower arrivals in the domestic market. Any fresh demand from the domestic buyers is likely to support pepper prices in the short term.
Pepper production in Vietnam and Indonesia is projected at 1.10 lakh tonnes while that in Indonesia is projected to be 41 thousand tonnes. Domestic consumption of Pepper in the world is expected to grow by 3.03% to 1.25 lakh tonnes while exports are likely to grow by 1.48% to 2.46 lakh tonnes in 2012.
According to Spices Board of India, exports of pepper during April 2011- November 2011 stood at 17,000 tonnes as compared to 11,850 tonnes in 2010-11, rise of 43.6%.
According to International Pepper Community (IPC) exports of black pepper during January to October 2011 from six major exporting countries (Brazil, India, Indonesia, Malaysia, Vietnam and Sri Lanka) was around 2.04 lakh tonnes a decline of 4.6% as compared to 2.14 lakh tonne in the same period last year.
