Pepper futures rise on spot demand, tight supply

Pepper prices recovered by Rs 102, or 0.51 per cent, to Rs 19,977 per 100 kg in futures trade today after speculators built up fresh positions, driven by pick up in buying activity at spot markets.

Tight supplies and estimates of lower global output also supported the upside in pepper prices at futures market here.

At the National Commodity and Derivatives Exchange (NCDEX) platform, pepper for delivery in September contract traded Rs 102 higher, or 0.51 per cent, at Rs 19,977 per 100 kg, with an open interest of 8,381 lots. 

In a similar fashion, the spice for delivery in August contract also gained Rs 96, or 0.49 per cent, to Rs 19,757 per 100 kg, with an open interest of 9,628 lots.

Spot pepper gained by Rs 5 at Rs 19,911 per 100 kg in Kochi, a major trading hub in Kerala. 

Analysts said besides, strong domestic demand in spot markets, drop in supplies as farmers awaited higher prices to sell their produce and lower global output also supported the upside in pepper futures prices here.

Meanwhile, country's pepper exports fell 5 per cent to 4,650 tonnes in April-June 2010, from the same period a year ago.