Spices Weekly Update: Pepper And Chilli Surges Sturdily On Supply Qualms

Strong buoyancy intensified in spices complex during the weak as vanishing supplies in major producing states against strong demand propelled the gains of over 4% in all the major spices.

Pepper futures have reported the gains of over Rs. 1000 per quintal last week in the wake of weak supplies in domestic market due to poor production in the current year. This has also routed the international buyers towards Vietnam market. Vietnam has shipped almost 23 per cent of their fresh crop, signaling some interesting developments in the global black pepper mart. The country, which is estimated to have a crop size of 110,000 tonnes this season, has already exported 25,000 tonnes according to the latest estimates available. The NCDEX May pepper settled at Rs. 27938 per quintal , gained almost Rs. 1008 per quintal last week.

Similar trend was also seen in Chilli market as restricted supplies in major mandies against strong stockiest and exporters demand added the gains of over Rs. 600 per quintal in chilli futures. As per our crop estimates, the total chilli production of the current year (2010-11 ) is likely at 250 lakh bags ( 1 bag = 40 kgs ) against 300 lakh bags reported last year , down almost 16%.The total production of Andhra Pradesh , a major chilli producing state is estimated at 120-123 lakh bags against 155-160 lakh bags reported last year. The NCDEX June Chilli futures settled at Rs. 10900 per quintal, gained almost Rs. 810 per quintal last week.

(Source: http://www.indiainfoline.com/Markets/News/Spices-Weekly-Update-Pepper-And-Chilli-Surges-Sturdily-On-Supply-Qualms/3659125162)