Sideways Trend Seen in Pepper As Export Rise .

MUMBAI (Commodity Online): Trend remained sideways for Pepper as it found some support at these levels and traders anticipated exports to rise in coming weeks. The demand has got affected at the higher levels and traders waited for some corrections before initiating fresh demand.

Fall in Dollar vs Re too kept exports slight down. There are expectations however of demand rising in coming weeks from the Festive season ahead that could support the prices.

Overall, good export and domestic demand, lower stocks and a fall in production are likely to support the market sentiments in the near term. Traders expect that good demand and a firm trend in Vietnam could support the rates further.

The exports are likely to pick up further and with stockists unwilling to sell at these levels, prices are likely to remain firm. Demand from North India remained moderately good.

Good demand from Gulf countries supporting the rates. Demand from China and West Asia also reported.

IPC has predicted 2011 crop to be lower by 2% at 309,952 MT. Carry forward 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-June 2011 have risen by 21% to 5.750 MT in 2011 from 4,750 MT in 2010 same period.

Source : commodityonline.com