India pepper hits contract high; seen opening up

(Reuters) - India benchmark December pepper futures struck fresh contract high on Thursday on worries unseasonal rains may affect the yield and also delay fresh arrivals, traders and analysts said.

Pepper futures are likely to extend gains as estimates of lower world output amid rising consumption are seen supporting the rise, they said.

"Indian prices have come down. India has now become the cheapest origin for Asta grade pepper. Export demand may pick-up in the coming months," said Jojan Malayil, CEO, Bafna Enterprises, a Kochi based exporter.

The most-active December contract hit a fresh contract high of 22,707 rupees per 100 kg earlier in the day.

The International Pepper Community (IPC) expects 2011 world output at 309,952 tonnes lower than 316,380 tonnes in 2010 on account of a shift of cultivated areas to rubber in Malaysia and tin mining in Indonesia. See [ID:nSGE6AA0OD].

In Kochi, pepper gained 240 rupees to close at 21,696 rupees per 100 kg.

India's pepper exports in April-August 2010 fell 5 percent to 7,600 tonnes from a year ago. [ID:nSGE67N0GJ]

Following are the closing prices of pepper futures in rupees per 100 kg on the National Commodity and Derivatives Exchange Ltd.

(Source: http://in.reuters.com/article/idINSGE6AI05420101119)