Pepper futures drop on global cues

| Updated on: Jul 24, 2012
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Pepper futures on the National Commodity and Derivatives Exchange had lost 0.29 per cent to Rs 43,150 per quintal on Monday due to weak international markets.

However, there was good buying interest at lower levels as the domestic production is expected to drop to a 10-year low. Reports of Vietnam farmers holding back their stock for better prices also helped recovery in prices after the initial fall.

Pepper prices in the international market were quoted at $8,200 a tonne (C&F) while Vietnam was offering its produce at $5,950 a tonne for 500 GL. Brazil shipments were at $6,150 a tonne for the B-Asta grade.

Arrivals in domestic market were lower at 22 tonnes against the demand of 23 tonnes.

Global production

Global pepper production in 2012 is expected to increase 7.2 per cent to 3.20 lakh tonnes compared with 2.98 lakh tonnes in 2011 with a sharp rise of 24 per cent in Indonesian and 10 per cent in Vietnam.

According to latest report, pepper output in Vietnam is estimated at 1.35 lakh tonnes compared with 1.1 lakh tonnes estimated early in the beginning of this year. Production in India is expected to decline five per cent to 43,000 tonnes against 48,000 tonnes last year.

Global pepper consumption is expected to grow 3.03 per cent to 1.25 lakh tonnes. 

Published on July 24, 2012

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