Pepper futures down on lacklustre export demand

Pepper suffered a setback by losing Rs 118, or 0.62 per cent, at Rs 18,855 per 100 kg in futures trade today, as speculators reduced positions due to lacklustre overseas demand.

Weak trend at spot markets due to subdued demand also put pressure on the pepper futures.

At the National Commodity and Derivatives Exchange counter, pepper for September-month contract fell by Rs 118, or 0.62 per cent, to Rs 18,855 per 100 kg, with an open interest of 8,508 lots.

Similarly, the spice for delivery in August also traded lower by Rs 101, or 0.54 per cent, at Rs 7,515 per 100 kg, with an open interest of 7,515 lots.

In Kochi, a major trading hub in Kerala, spot pepper fell Rs 147 at Rs 19,309 per 100 kg.

Analysts attributed the fall in pepper prices at futures market to poor overseas demand, as India is quoting at a premium to other competitors and weak demand at the spot markets.