Pepper futures up on lower supply

Pepper futures prices surged by Rs 124 to Rs 22,540 per quintal today, as speculators enlarged positions, driven by lower supplies in spot markets.

Estimates of lower global production and diminishing stocks also supported the upsurge in the spice's prices at futures trade here.

At the National Commodity and Derivatives Exchange counter, pepper for delivery in February rose by Rs 124, or 0.55 per cent to Rs 22,540 per quintaL.

Likewise, the spice for delivery in December month rose by Rs 140, or 0.63 per cent to Rs 22,354 per quintal, clocking a trade volume of 11,165 lots. 

Analysts said limited supplies in physical markets and estimates of lower global production in the physical markets mainly influenced pepper futures prices here.

Besides, expectations that the winter demand for the spice may pick in the coming days also supported the upside, they said.

Meanwhile, in Kochi, pepper gained Rs 288 to Rs 21,741 per 100 kg yesterday.