Pepper up 1.13% on thin supply, low inventory

Concerns over low output help uptrend

Pepper futures prices shot up by 1.13% to Rs 44,475 per quintal today as speculators enlarged positions, driven by thin supplies in the physical market and lower inventory.

At the National Commodity and Derivatives Exchange, pepper for delivery in August traded Rs 495, or 1.13%, higher at Rs 44,475 per quintal, with an open interest of 1,519 lots.

September pepper shot up by Rs 115, or 0.26%, to Rs 44,080 per quintal, with an open interest of 4,786 lots.

Marketmen said the rise in pepper futures was supported by tight supplies in the market and lower inventory.

Besides, lower output concerns on account of deficient rains in key producing states of Kerala and Karnataka supported the uptrend, they said.