The pepper prices are jumping up everyday in Indian market taking cues from International market. Seeing such a bullish phase, the expectations are that the prices are going to go up further resulting in stocking of the commodity for more better prices. The supply is limited as farmers and stockists prefer to hold onto the stock for festive seasons during which prices might shoot up to even higher levels. From this level, if other origins start liquidating their stocks then the market may see some correction but as per reports the production in most countries is lower than previous year so stockists may prefer to liquidate slowly at each high and get the maximum benefit and at the same time cushioning the downward risks too. At present, pepper can be said as the hottest agri commodity in world market.

As per one report, bear operators were also playing their role by spreading bearish reports that all the overseas Ramadan requirements have been met and the European markets, except for some pockets in Eastern Europe, have also covered their immediate requirements. Besides, some reports said it is hard to sell nearby shipments to the US. All these are aimed at pulling the prices down as the Indian market has reacted more than what they anticipated, the trade sources said.

Black Pepper Futures Prices per ton in Indian market:
July - moved up by 2.63%, August - US$ 4385 (up by 2.36%), September - US$ 4442 (up by 2.59%), October - US$ 4477, November - US$ 4513, December - US$ 4546

Pepper International Prices: Indian pepper is at US$ 4500, Brazilian is at US$ 4300-4350, Vietnamese origin is at USD 4400 while Indonesian, the biggest supplier to U.S. in recent times, is available in the range of US$ 4350-4400 per ton all on fob basis.

Currency Impact: Indian rupee ended weaker by around 0.70% against US dollar today limiting the upside movement of pepper in dollar terms.