Pepper futures rise on spot demand, tight supply

Supported by pick up in spot demand against restricted supplies, pepper prices shot up by Rs 174, or 0.86 per cent, to Rs 20,454 per 100 kg in futures trade today.

Estimates of lower global output also influenced pepper prices at the futures market here.

At the National Commodity and Derivatives Exchange platform, pepper for delivery in December-month contracts traded Rs 174, or 0.86 per cent higher at Rs 20,454 per 100kg, having an open interest in 480 lots.

In a similar manners, spices for delivery in August contracts also gained Rs 93, or 0.48 per cent, to Rs 19,690 per 100 kg, with an open interest of 9,935 lots.
    
Analysts said apart from pick up in spot demand against restricted supplies, estimates of lower global output also supported hike in pepper prices in futures trade here.
    
Meanwhile, Vietnam, the world's largest producer and exporter of spices is expected to produce 100,000 tonnes of black pepper in 2010, down 5 per cent, year on year.