PEPPER FUTURES GAIN MOMENTUM ON BARGAIN BUYING
DATE: 02/05/2012
Pepper futures gained momentum on bargain buying. The commodity was trading weak for quite few sessions as increased arrival pressure of the new crop pulled back the prices. International markets too traded weak on good production reports in Vietnam and higher arrivals there. As per IPC latest estimates, global Pepper production expected to rise to 320,000 tonnes in 2012 against 2,98,000 tonnes this year, a rise of 7.2%.
Meanwhile, global exports are expected to rise to 2.46 lakh tonnes against 2.42 lakh tonnes in 2011. Indonesian production is expected to rise to 41000 tonnes up from 33000 tonnes. Malaysian production is also expected higher at 26500 tonnes against 25600 tonnes. On the other hand, Indian production is expected to decline by 5000 tonnes at 43000 tonnes. Reports of farmers shifting to other more profitable crops have affected the production aspects for the crop in India.
The contract for May delivery was trading at Rs 37150.00, up by 0.79% or Rs 290.00 from its previous closing of Rs 36860.00. The open interest of the contract stood at 4410 lots.
The contract for June delivery was trading at Rs 37825.00, up by 0.73% or Rs 275 from its previous closing of Rs 37550.00. The open interest of the contract stood at 1400 lots on NCDEX.
POWERED BY: COMMODITY INSIGHTS
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