Pepper recovers in futures trade on spot demand, tight supply

Pepper prices recovered by Rs 60, or 0.31 per cent, to Rs 19,300 per 100 kg in futures trade today with speculators creating fresh positions, driven by pick up in buying activity at the spot market.

Tight supplies in the spot market and estimates of lower global output also influenced pepper futures prices.

At the National Commodity and Derivatives Exchange (NCDEX) platform, pepper for delivery in August contracts traded Rs 60 higher, or 0.31 per cent, at Rs 19,300 per 100 kg, with an open interest of 8,645 lots.

In a similar manners, the spice for delivery in September contracts also gained Rs 49, or 0.25 per cent, to Rs 19,512 per 100 kg, with an open interest of 8,551 lots.

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