Pepper may continue to move further higher

Weakness in Dollar vs Re further affected the exports adversely. Vietnam is having low stocks as per reports that could result in export demand shifting to India.

Pepper rates recovered from the lower levels as demand picked up moderately in the mandis. Some domestic demand from the North was there and that supported the prices to some extent. Reports of some export demand at these low levels have been reported.

Indonesia and Brazil are reportedly quoting lesser rates and this has impacted the Indian prices due to fall in its export demand.

Arrivals expected to rise from Indonesia and Brazil in coming days and that pressurized prices. However reports of lower stocks and expected rise in demand at these low levels could support the price and traders are anticipating both exports and domestic demand to rise in coming weeks.

Weakness in Dollar vs Re further affected the exports adversely. Vietnam is having low stocks as per reports that could result in export demand shifting to India.

Brazil and Indonesian crop expected to be lower. Low carryover stock in Brazil and Indonesia is likely to raise exports here in coming months. Reports from IPC predict a fall in Pepper production in 2010 to 2 70 650 tonnes vs 2 79 650 tonnes in 2009.

Reports of farmers shifting to other more profitable crops have affected the production aspects for the crop in India. Indian traders reportedly holding onto stocks in anticipation of a rise in price in coming months.

Latest reports from Spice Board of India indicates the Pepper exports for the period April August have fallen by 5% to 7 600 MT in 2010 from 8 000 MT in 2009.

Tags: Vietnam Pepper, Vietnam Pepper prices