PEPPER UPDATE

PEPPER UPDATE ON 29 SEPTEMBER

The international pepper market appears to be facing a

tight supply positionwhen there is every posibility of potential

demand emerging in the coming weeks from the US and Europe

markets to cover for their uncovered portions of their winter/

New Year requirements. However it might depend on how far

the crisis in the US economy is going to impact the pepper

market there.

All the contracts went up during the week and the increase was

from Rs. 736 to Rs. 786 a quintal on NCDEX, and on NMCE

it was from Rs.686 to Rs. 829 a quintal.

Spot prices went up by Rs. 300 a quintal during the week

to close at Rs. 13100 ( ungarbled ) and Rs. 13700 ( MG1 )

at the weekend.

In India, the stock position with the exchanges is estimated at

around 5000 tonnes.Stock position at NCDEX on Sept 22

was at 4626 tonnes. The farmers , who are said to be holding

stocks, are not ready to part with their produce at current price.

Therefore , we may not have much to offer , trading sources

said adding there is going to be strong domestic demand in the

coming days.