Pepper futures extend gains on tight supply

Pepper extended its gains in the futures market for the third straight day today, adding Rs 180 to Rs 35,970 per quintal as speculators enlarged their positions, influenced by rising demand in the spot market.

Lower estimates of domestic production also supported the uptrend in pepper prices.

At the National Commodity and Derivatives Exchange, January pepper rose by Rs 180, or 0.50%, to Rs 35,970 per quintal, with an open interest for 3,966 lots.

The December contract moved up by Rs 135, or 0.37%, to Rs 37,010 per quintal in 6,589 lots.

Analysts said apart from rising spot market demand, lower domestic output estimates mainly pushed up pepper prices in futures trade.