MUMBAI (Commodity Online): Pepper futures traded up on Friday due to fresh buying by the traders and on rising demand from the overseas market.
At NCDEX Pepper June contract is currently trading at Rs.30386 per 100 Kg, higher by 1.37 per cent against the previous close. In the earlier sessions the contract traded at a range of Rs.29870-30770 per 100 Kg. Open interest of the contract is 15223 lots as of now.
Restricted supplies from producing regions and firming trend in futures trade, also supported the rise in prices. Black pepper prices rose by Rs 200 to settle at Rs 28,800-30,000 per quintal.
In absence of news from other origins like Brazil and Indonesia might limit the gains. Indian pepper in global market is quoted at $6900 per mt. As per trade sources, trend is also firm in Vietnam as they have sold around 50% of their production.
Vietnam pepper planters are holding back their produce anticipating further rise in the prices. As per derivative analysis, open interest in June contract has increased while prices and volumes have declined a bit. This indicates market is vulnerable to a smart recovery however; overall trend is likely to remain volatile.