Pepper Likely To Gain On Rising Demand .

MUMBAI (Commodity Online): Pepper rates found some strong support at the lower levels and expectations of rise in demand in coming weeks could perk up prices further as per traders.

Fall in other Agri Commodities rates have been pressurizing the market sentiments for Pepper also. Exports and domestic demand remained good. Demand from North India too has been regularly there ahead of the Festive season.

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.

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.

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. 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-June 2011 have risen by 21% to 5.750 MT in 2011 from 4,750 MT in 2010 same period.

Source : commodityonline.com