Pepper Shoot Up Sharply On Smart Buying

Pepper futures extended the gains on strong buying amid short covering in the near month February contract. Fresh buying reported in the March contract as traders were rollover the position to next month contract. NCDEX pepper futures touched fresh peaks in today's trading session.

Pepper February contract on NCDEX ended the last session higher by 4% at Rs. 24445 and the open interest dipped 0.35% to 8360 tonnes. Volume traded slipped to 9,079 from 10,223 tonnes.

March delivery ended the last session higher by 3.64% at Rs. 24535 and the open interest added 5.63% to 8863 tonnes and volume traded surged to 11,397 tonnes from 9,027 tonnes.

Tight supply position against strong demand was witnessed in the global markets. Fresh arrivals from new crop were not much as harvesting delayed in kerala due to untimely rains. Domestic demand from the north Indian buyers during the winter season is strong.

Indonesia's pepper production will likely decrease by 33.4 percent to 37,000 tons this year from 56,000 tons last year due to bad weather conditions, according to the International Pepper Community (IPC).

Domestic production is projected to decline marginally in 2011 by 2,000 tonne to 48,000 tonne. According to the 38th IPC meeting held recently in Kochi, the new crop of 2011 is estimated to be lower by 2% at 309,952 tonne against 316,380 tonne in 2010 and 318,662 tonne in 2009. Carry-forward stocks in producing countries are projected to decline marginally to 94,582 tonne in 2011 from 95,442 tonne in 2010. Exportable surplus of producing nations is projected to be around 324,292 tonne in 2011, as against 333,092 in 2010.

(Souce: http://www.indiainfoline.com/Markets/News/Pepper-Shoot-Up-Sharply-On-Smart-Buying/3549282814)