MUMBAI( Commodity Online): Moderate profit booking was observed for Pepper as other Spices fell. No strong reports emerged from the markets however.
Traders expect fall in rates over last few days have been significant and an expected rise in exports in coming weeks could support the price further.
Slight improved production prospects from Kerala and Karnataka and arrival of the new crop could limit the uptrend. Overall Fundamentals remained firm however from lower stocks and lower production amidst expected rise in export demand n coming weeks.
Exports and domestic demand from North India remained good. Traders expect that with low stocks, lower global production and rising export demand, trend is likely to remain Bullish for the commodity from a medium to long term point of view.
Strengthening in the Dollar vs Re rates could have beneficial impact on the export front. But short term correction possibilities remain.
Traders expect that good demand and a firm trend in Vietnam could support the rates further. Good demand from Gulf countries sup-porting the rates. Demand from China and West Asia also reported.
IPC has predicted 2011 crop to be lower by 2% at 309,952 MT. Carryforward stocks are expected to decline marginally to 94,582 MT vs 95,442 MT. Global exports have declined by 11% to 237,650 MT. Indian production expected to decline to 48,000 MT.
Vietnam is having low stocks as per reports. The production there too is expected to fall this year as per some estimates. 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 of farmers shifting to other more profitable crops have affected the production aspects for the crop in India.
Latest reports from Spice Board of India indicates the likely Pepper exports for the period April-August 2011 have risen by 12% to 8.750 MT in 2011 from 7,800 MT in 2010 same period.
Courtesy: Religare Commodities
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