MUMBAI (Commodity Online): Profit booking at the higher levels was noted for Pepper as closure on some International markets affected the export demand. Exporters also waited for some corrections before initiating fresh demand in the mandis.
Weakness in International markets too affected the Indian market sentiments as fresh crop arrivals are expected to temper down the prices in the short term.
There are expectations of some more corrections in the short term as higher production estimates are keeping pressure on the market sentiments. Medium term trend however looks positive on expected rise in export demand.
As per IPC latest estimates, global Pepper production expected to rise to 3,20,000 tonnes in 2012 vs 2,98,000 tonnes this year – a rise of 7.2%. Global exports expected to rise to 2.46 lakh tonnes vs 2.42 lakh tonnes in 2011.
The production in Vietnam, the largest producer, is expected at 1.10 lakh tonnes – a rise of 10,000 tonnes. New crop arrives in Feb.
Indonesian production expected to rise to 41000 tonnes up from 33000 tonnes. Malaysian production also expected higher at 26500 tonnes vs 25600 tonnes.
Indian production 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.
Latest reports from Spice Board of India indicates Pepper exports for the period April-Oct 2011 have risen by 33% to 13750 MT in 2011 from 10350 MT in 2010 same period.
Source : commodityonline.com