- Kochi spot prices hold at INR 725/kg as arrivals decline 18%
- Dec futures rise 2%, while Oct open interest increases 30%
India’s black pepper market remained stable during the assessment week ended 11 September, with lower arrivals supporting Kochi spot prices. Spot prices held at INR 725/kg, while October futures remained unchanged at INR 733/kg. December futures rose 2.0% to INR 750/kg from INR 735/kg on 4 September, indicating firmer sentiment in the forward market. However, stable spot and near-term futures prices suggest that demand remains insufficient to drive a sustained price increase.
Lower arrivals support spot prices
Kochi black pepper arrivals declined 17.7% to 787 MT during the week ended 11 September from 956 MT in the previous week. The reduction in incoming supply helped support spot prices, although the unchanged benchmark indicates that lower availability has not yet translated into stronger buying interest.
Reported Kochi stocks remained unchanged at 15 MT, pointing to stable available inventory. Domestic production, arrivals, inventory levels and import availability remain key factors shaping India’s pepper market. The combination of lower arrivals and unchanged stocks suggests a balanced market, with moderated supply offsetting limited demand.
Futures indicate cautious buying interest
October futures held at INR 733/kg, while December futures increased to INR 750/kg. October open interest rose 29.5% to 79 MT from 61 MT, with prices unchanged. The increase indicates fresh position buildup, although the direction of these positions cannot be established from price and open interest data alone. December open interest remained at zero.
The rise in December futures suggests improving forward sentiment, but the absence of movement in spot and October futures indicates that buying interest remains cautious.
International prices show mixed movement
Vietnamese black pepper prices increased 1.3% during the week. The 500 g/l grade rose to $6,070/t from $5,990/MT on 4 September, while 550 g/l pepper increased to $6,130/MT from $6,050/MT. Indonesian black pepper prices remained largely stable, rising 0.1% to $6,939/MT from $6,929/MT.
The firmer Vietnamese market contrasts with stable Indian prices, while limited movement in Indonesia indicates a balanced regional market.
Outlook
India’s black pepper market is expected to remain largely stable in the near term. Lower arrivals and gains in December futures could provide support, but stable spot prices and limited buying interest may restrict further upside. Domestic supply availability, international price movements and trade activity will remain key factors influencing market direction.
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