India pepper up on low Vietnam crop, rainfall

MUMBAI, July 17 (Reuters) - Indian pepper futures rose on Thursday on reports of weak production in Vietnam and low rainfall in major growing regions, analysts said.

"Low production in Vietnam boosted the sentiment," said an analyst with Motilal Oswal Commodities Broker Pvt Ltd.

Vietnam, the world's largest black pepper producer, has completed harvesting up to 87,000 tonnes of the spice, down from 90,300 tonnes last year, the Vietnam Pepper Association said on Thursday.

Global production is estimated at 259,000 tonnes this year, while consumption would be 305,000 tonnes, according to figures released by the association in May.

Weak monsoon in major pepper growing regions may reduce production next year and this supported the market, said Alimuhammad Lakdawala, an analyst with Anand Rathi Commodities.

Kerala, the largest producer, has received 44 percent lower rainfall compared to its long-term average during June 1-July 15, according to the weather department.

Open interest for August contract rose to 12,553 tonnes from 11,997 tonnes the previous session.

Spot pepper was up 0.9 percent at 14,473 rupees per 100 kg in spices hub of Kochi in Kerala.

Following are the closing prices of pepper futures in rupees per 100 kg on the National Commodity and Derivatives Exchange Ltd. <0#NPE:>: