Pepper Likely To Gain On Tight Supply

Every dip in the futures market is a good opportunity for the investors to buy pepper in the wake of the current tight supply position in the domestic and world market. At present, the market is fluctuating depending upon the financial muscle power of the bulls and the bears. In the international market, offers from Vietnam is expected to commence from mid-March. But, according to latest information prices there are likely to rule high contrary to expectations. According to Vietnam Pepper Association (VPA), this year's weather is inconvenient for pepper cultivation, as a result, black pepper volume for export will be reduced by 10 per cent. VPA is searching for material sources from Cambodia and Indonesia to make up for the deficiency.
On the other hand, foreign investments are said to taking place in Vietnam in pepper processing and marketing and that might also contribute to good quality and a consequent increase in prices. Meanwhile, since the prices are ruling high overseas buyers are waiting for prices to drop after selling pressure builds up in Vietnam later this month. In the futures market, prices declined marginally on bearish operations. Investors who had sold futures are ready to buy spot NCDEX delivered. On NCDEX, March contract dropped by Rs 45 a quintal to close at Rs 12,352. The decline in other contracts was from Rs 6 to Rs 29 a quintal. On NMCE, March contract fell by Rs 79 a quintal to close at Rs 11,601. The fall in other contracts was from Rs 40 to 81 a quintal.