Commodity markets are markets where raw or primary products are exchanged.

These raw commodities are traded on regulated commodities exchanges, in which they ar e bought and sold in standardized contracts. This article focuses on the history and current debates regarding global commodi ty markets. It covers physical product (food, metals, electricity) markets but n ot the ways that services, including those of governments, nor investment, nor d ebt, can be seen as a commodity. Articles on reinsurance markets, stock markets, bond markets and currency markets cover those concerns separately and in more d epth. One focus of this article is the relationship between simple commodity mon ey and the more complex instruments offered in the commodity markets. The modern commodity markets have their roots in the trading of agricultural products. Whi le wheat and corn, cattle and pigs, were widely traded using standard instrument s in the 19th century in the United States, other basic foodstuffs such as soybe ans were only added quite recently in most markets.[citation needed] For a commo dity market to be established, there must be very broad consensus on the variati ons in the product that make it acceptable for one purpose or another. The economic impact of the development of commodity markets is hard to overestim ate. Through the 19th century "the exchanges became effective spokesmen for, and innovators of, improvements in transportation, warehousing, and financing, whic h paved the way to expanded interstate and international trade. The trading of commodities consists of direct physical trading and derivatives t rading. Exchange traded commodities have seen an upturn in the volume of trading since the start of the decade. This was largely a result of the growing attract ion of commodities as an asset class and a proliferation of investment options w hich has made it easier to access this market. The global volume of commodities contracts traded on exchanges increased by a fi fth in 2010, and a half since 2008, to around 2.5 billion million contracts. Dur ing the three years up to the end of 2010, global physical exports of commoditie s fell by 2%, while the outstanding value of OTC commodities derivatives decline d by two-thirds as investors reduced risk following a five-fold increase in valu e outstanding in the previous three years. Trading on exchanges in China and Ind ia has gained in importance in recent years due to their emergence as significan t commodities consumers and producers. China accounted for more than 60% of exch ange-traded commodities in 2009, up on its 40% share in the previous year. Commodity assets under management more than doubled between 2008 and 2010 to nea rly $380bn. Inflows into the sector totalled over $60bn in 2010, the second high est year on record, down from the record $72bn allocated to commodities funds in the previous year. The bulk of funds went into precious metals and energy produ cts. The growth in prices of many commodities in 2010 contributed to the increas e in the value of commodities funds under management

Intro : Black pepper (Piper nigrum) is a flowering vine in the family Piperaceae, cultiv ated for its fruit, which is usually dried and used as a spice and seasoning. Th e fruit, known as a peppercorn when dried, is approximately 5 millimetres (0.20 in) in diameter, dark red when fully mature, and, like all drupes, contains a si ngle seed. Peppercorns, and the powdered pepper derived from grinding them, may be described simply as pepper, or more precisely as black pepper, white pepper, or green pepper. Green peppercorns are simply the immature black peppercorns. Black peppers are native to India and are extensively cultivated there and elsew here in tropical regions. Currently Vietnam is by far the world's largest produc er and exporter of pepper, producing 34% of the world's Piper nigrum crop as of 2008. Dried ground pepper has been used since antiquity for both its flavor and as a m

edicine. Black pepper is the world's most traded spice. It is one of the most co mmon spices added to European cuisineThe word "pepper" is ultimately derived fro m the Tamil/Malayalam word for long pepper, pippali.[2][3][4] Black pepper is ma rica. Ancient Greek and Latin borrowed pippali to refer to either via the Latin piper which was used by the Romans to refer both to pepper and long pepper, as t he Romans erroneously believed that both of these spices were derived from the s ame plant.[citation needed] The English word for pepper is derived from the Old English pipor. The Latin word is also the source of German Pfeffer, French poivr e, Dutch peper, and other similar forms. In the 16th century, pepper started ref erring to the unrelated New World chile peppers as well. "Pepper" was used in a figurative sense to mean "spirit" or "energy" at least as far back as the 1840s; in the early 20th century, this was shortened to pep.[5] In Nepal it is known a s Marich [edit] and its descendants. The spiciness of black pepper is due to the chemical piperine. It may be found on nearly every dinner table in the industrialized wo rld, often alongside table salt. Black pepper Roughly mashed black peppercorns Black pepper is produced from the still-green unripe drupes of the pepper plant. The drupes are cooked briefly in hot water, both to clean them and to prepare t hem for drying. The heat ruptures cell walls in the pepper, speeding the work of browning enzymes during drying. The drupes are dried in the sun or by machine f or several days, during which the pepper around the seed shrinks and darkens int o a thin, wrinkled black layer. Once dried, the spice is called black peppercorn . Black peppercorn is considered spicier than white peppercorn. [edit]White pepper White pepper grains White pepper consists of the seed of the pepper plant alone, with the darker col ored skin of the pepper fruit removed. This is usually accomplished by a process known as retting, where fully ripe peppers are soaked in water for about a week , during which the flesh of the pepper softens and decomposes. Rubbing then remo ves what remains of the fruit, and the naked seed is dried. Alternative processe s are used for removing the outer pepper from the seed, including decortication, the removal of the outer layer through mechanical, chemical or biological metho ds.[6] White pepper is sometimes used in dishes like light-colored sauces or mashed pot atoes, where ground black pepper would visibly stand out. They have differing fl avor due to the presence of certain compounds in the outer fruit layer of the dr upe that are not found in the seed. Black, green, pink (Schinus terebinthifolius), and white peppercorns [edit]Green pepper Green pepper, like black, is made from the unripe drupes. Dried green peppercorn s are treated in a way that retains the green color, such as treatment with sulf ur dioxide, canning or freeze-drying. Pickled peppercorns, also green, are unrip e drupes preserved in brine or vinegar. Fresh, unpreserved green pepper drupes, largely unknown in the West, are used in some Asian cuisines, particularly Thai cuisine.[7] Their flavor has been described as piquant and fresh, with a bright aroma.[8] They decay quickly if not dried or preserved. A product called orange pepper or red pepper consists of ripe red pepper drupes preserved in brine and vinegar. Ripe red peppercorns can also be dried using the same color-preserving techniques used to produce green pepper.[9] Pink pepper f rom Piper nigrum is distinct from the more-common dried pink peppercorns, which

are the fruits of a plant from a different family, the Peruvian pepper tree, Sch inus molle, and its relative the Brazilian pepper tree, Schinus terebinthifolius . [edit]Region of origin Peppercorns are often categorised under a label describing their region or port of origin. Two well-known types come from India's Malabar Coast: Malabar pepper and Tellicherry pepper. Tellicherry is a higher-grade pepper, made from the larg est, ripest 10% of fruits from Malabar plants grown on Mount Tellicherry.[10] Sa rawak pepper is produced in the Malaysian portion of Borneo. Lampung pepper on Indonesia's island of Sumatra. White Muntok pepper is another Indonesian product. Vietnam peppers are white and black pepper and come from Ba Ria - Vung Tau, Chu Se and Binh Phuoc.[11] History: Pepper has been used as a spice in India since prehistoric times. Pepper is nati ve to India and has been known to Indian cooking since at least 2000 BCE.[15] J. Innes Miller notes that while pepper was grown in southern Thailand and in Mala ysia, its most important source was India, particularly the Malabar Coast, in wh at is now the state of Kerala.[16] Peppercorns were a much-prized trade good, of ten referred to as "black gold" and used as a form of commodity money. The term "peppercorn rent" still exists today. The ancient history of black pepper is often interlinked with (and confused with ) that of long pepper, the dried fruit of closely related Piper longum. The Roma ns knew of both and often referred to either as just "piper". In fact, it was no t until the discovery of the New World and of chile peppers that the popularity of long pepper entirely declined. Chile peppers, some of which when dried are si milar in shape and taste to long pepper, were easier to grow in a variety of loc ations more convenient to Europe. After the Middle Ages , virtually all of the black pepper found in Europe, the M iddle East, and North Africa was from India's Malabar region. By the 16th centur y, due to the Portuguese influence, pepper was also being grown in Java, Sunda, Sumatra, Madagascar, Malaysia, and elsewhere in Southeast Asia, but these areas traded mainly with China, or used the pepper locally.[17] Ports in the Malabar a rea also served as a stop-off point for much of the trade in other spices from f arther east in the Indian Ocean. Black pepper, along with other spices from India and lands farther east, changed the course of world history. It was in some part the preciousness of these spic es that led to the Portuguese efforts to find a sea route to India during the ag e of discovery and consequently to the Portuguese colonial occupation of that co untry, as well as the European discovery and colonisation of the Americas.[18]

As medicine 'There's certainly too much pepper in that soup!' Alice said to herself, as well as she could for sneezing. Alice in Wonderland (1865). Chapter VI: Pig and Pepp er. Note the cook's pepper mill. Like many eastern spices, pepper was historically both a seasoning and a medicin e. Long pepper, being stronger, was often the preferred medication, but both wer e used. Black Pepper (or perhaps long pepper) was believed to cure illness such as const ipation, diarrhea, earache, gangrene, heart disease, hernia, hoarseness, indiges tion, insect bites, insomnia, joint pain, liver problems, lung disease, oral abs cesses, sunburn, tooth decay, and toothaches.[29] Various sources from the 5th c entury onward also recommend pepper to treat eye problems, often by applying sal ves or poultices made with pepper directly to the eye. There is no current medic

al evidence that any of these treatments has any benefit; pepper applied directl y to the eye would be quite uncomfortable and possibly damaging.[30] Nevertheles s, Black pepper either powdered or its decoction is widely used in traditional I ndian medicine and as a home remedy for relief from sore throat, throat congesti on, cough etc. Pepper is known to cause sneezing. Some sources say that piperine, a substance p resent in black pepper, irritates the nostrils, causing the sneezing;[31] Few, i f any, controlled studies have been carried out to answer the question. It has b een shown that piperine can dramatically increase absorption of selenium, vitami n B, beta-carotene and curcumin as well as other nutrients.[32] As a medicine, pepper appears in the Buddhist Samaaphala Sutta, chapter five, as o ne of the few medicines allowed to be carried by a monk.[33] Pepper contains small amounts of safrole, a mildly carcinogenic compound.[32] Al so, it is eliminated from the diet of patients having abdominal surgery and ulce rs because of its irritating effect upon the intestines,[34] being replaced by w hat is referred to as a bland diet. However, extracts from black pepper have bee n found to have antioxidant properties[35] and anti-carcinogenic effects, especi ally when compared to chili.[36] Piperine present in black pepper acts as a thermogenic compound. Piperine enhanc es the thermogenesis of lipid and accelerates[37] energy metabolism in the body and also increases the serotonin and beta-endorphin production in the brain. Piperine and other components from black pepper may also be helpful in treating vitiligo,[38] although when combined with UV radiation should be staggered due t o the effect of light on the compound.[39]

Flavor Pepper gets its spicy heat mostly from the piperine compound, which is found bot h in the outer fruit and in the seed. Black pepper contains between 4.6% and 9.7 % piperine by mass, and white pepper slightly more than that.[40] Refined piperi ne, by weight, is about one percent as hot as the capsaicin in chili peppers. Th e outer fruit layer, left on black pepper, also contains important odour-contrib uting terpenes including pinene, sabinene, limonene, caryophyllene, and linalool , which give citrusy, woody, and floral notes. These scents are mostly missing i n white pepper, which is stripped of the fruit layer. White pepper can gain some different odours (including musty notes) from its longer fermentation stage.[41 ] Pepper loses flavor and aroma through evaporation, so airtight storage helps pre serve pepper's original spiciness longer. Pepper can also lose flavor when expos ed to light, which can transform piperine into nearly tasteless isochavicine.[41 ] Once ground, pepper's aromatics can evaporate quickly; most culinary sources r ecommend grinding whole peppercorns immediately before use for this reason. Hand held pepper mills (or "pepper grinders"), which mechanically grind or crush whol e peppercorns, are used for this, sometimes instead of pepper shakers, dispenser s of pre-ground pepper. Spice mills such as pepper mills were found in European kitchens as early as the 14th century, but the mortar and pestle used earlier fo r crushing pepper remained a popular method for centuries after as well.[42] [edit]

Peppercorns (dried black pepper) are, by monetary value, the most widely traded spice in the world, accounting for 20 percent of all spice imports in 2002. The price of pepper can be volatile, and this figure fluctuates a great deal year to

year; for example, pepper made up 39 percent of all spice imports in 1998.[43] By weight, slightly more chilli peppers are traded worldwide than peppercorns. T he International Pepper Exchange is located in Kochi, India. Participation on th e IPE however is domestic with regulatory restrictions on international membersh ip on local exchanges; something common to almost all Asian commodity exchanges. As of 2008, Vietnam is the world's largest producer and exporter of pepper, prod ucing 34% of the world's Piper nigrum. Other major producers include India (19%) , Brazil (13%), Indonesia (9%), Malaysia (8%), Sri Lanka (6%), China (6%), and T hailand (4%). Global pepper production peaked in 2003 with over 355,000 t (391,0 00 short tons), but has fallen to just over 271,000 t (299,000 short tons) by 20 08 due to a series of issues including poor crop management, disease and weather . Vietnam dominates the export market, using almost none of its production domes tically; however its 2007 crop fell by nearly 10% from the previous year to abou t 90,000 t (99,000 short tons). Similar crop yields occurred in 2007 across the other pepper producing nations as well.[4

Agri-commodities failed to make gains this week on monsoon forecast, higher prod uction forecasts especially in pulses that is expected to reach while edible oil s gained on global cues. Crude Oil prices will continue to impact agricultural p rices as higher prices could Lead to diversion of food crops for biofuel which c ould again boost food inflation.

Black Pepper futures witnessed a crash this week on lack of buying support and u ncertainties in global economy. On the fundamental side, tight supplies and fall in output in major growing nations continue to be supportive of prices. The Jun e contract at NCDEX rose to a high of 30700 this week but failed to hold on to t his level and subsequently witnessed a drop of 4.49% on week to 29,225 Export demand for the local variety has not been peaking up at elevated levels g rowers, who refused to partake in brining their produce to the mandies in hopes of even higher prices, were seen giving up their stance gradually. According to Spices Board of India exports of pepper from India during April 2010- February 2 011 stood at 16,600 tonnes as compared to 18,425 tonnes in 2009-10, decline of 1 0%. According to International Pepper Community (IPC) exports of Black Pepper from I ndonesia during January to April 2011stood at 10,821 Mt (7025), increase of 54% as compared to previous year. The fall in Indian futures market is attributed to the rise in Indonesian exports and thus leading to heavy crash. According to In ternational Pepper Community (IPC) global output of Pepper for 2011 is expected to decline by 6,500 tonnes to 3.10 lakh tonnes but the radical upswing in local prices during the current year is expected to make it a little difficult for the commodity to extend the gains in near term. Prices are up around 36% since the start of 2011. In other spices, Turmeric dropped more than 8% on steady arrivals while Jeera and Chilli also suffered heavily with a correction of 7% and 9% res pectively. Will pepper prices face tough resistance at 30,000 levels?

MUMBAI (Commodity Online): Pepper futures rose Friday on weak arrivals from the fresh crop amid thin supply from the physical markets. Hopes of overseas demand may pickup could support the prices to trade further higher. At NCDEX Pepper September contract is trading at Rs.33020 per quintal, higher by Rs. 120 or 0.36% at 11.30 AM against the previous close. In the earlier sessions the contract traded at a high of Rs.33200 per quintal an d a low of Rs.33000 per quintal. Open interest of the contract is 8413 lots for the time being. Pepper futures in the intraday are expected to trade higher due to improved dema nd ahead of festivals and lower arrivals at the domestic market. According to Spices Board of India exports of Pepper from India during April 201 1- June 2011 stood at 5,750 tonnes as compared to 4,750 tonnes in 2010-11, rise of 21.1%. According to International Pepper Community (IPC) exports of Black Pepper from s ix major exporting nations during January June 2011 stood at 1.23 lakh tonnes re gistering a decline of 3 percent compared to 1.26 lakh tonnes in 2010.

Indian pepper futures continued to move with volatility in the early trading ses sion on Thursday. The Pepper for the September delivery ended the last day up by 0.46% at Rs 33076 after moving in the range of Rs 33250-32472 per 100 kg. The o pen interest dipped by 0.35% to 9,133 tonnes. In today's early moves, the contract moved in the range of Rs 33333-32152 level and the contract is currently trading higher at Rs 33160, up Rs 84 over the last close. The open interest dipped nearly 5% and volume traded as of now stood at 3,721 tonnes. The contract is likely to find support at Rs 32810, Rs 32470 while resistance is at Rs 33350, Rs 33500 level. The spot prices have tested highs above Rs 31100 on Wednesday and demand is expe cted to take a backseat on these levels though the export market remains exubera nt on lack of supplies from major destinations like Vietnam and Brazil. Vietnam has almost run out of the stocks and Brazil, where harvesting of the crop is cur rently on, could not be able to supply the commodity at a much cheaper rate give n the strength in its currency Real. As noted Commodity Futures Trading Supervisory Agency (Bappebti) Ministry of Com merce, in West Lampung regency, the demand for peppers has increased by 50 perce nt. Pepper prices at the level of Rp. 55,000 per kilogram.

MUMBAI (Commodity Online): Pepper futures surged on Tuesday due to limited stock s in the physical market ahead weak arrivals from the producing regions. Rising demand for the upcoming festive seasons also supported the uptrend. At NCDEX Pepper September Contract is now trading at Rs.31590 per quintal, highe

r by 3.75% against the previous close. In the early sessions the contract traded at a range of Rs.30475-31650 per quintal. Open interest of the contract is 8243 lots so far. Demand from North India too has been regularly there ahead of the Festive season . Traders expect that with low stocks, lower global production and rising export demand, trend is likely to remain bullish for the commodity from a medium to lo ng term point of view. IPC has predicted 2011 crop to be lower by 2% at 309,952 MT. Carry forward stock s are expected to decline marginally to 94,582 MT vs 95,442 MT. Global exports h ave declined by 11% to 237,650 MT. Indian production expected to decline to 48,0 00 MT.

Kochi: Uncertainty rules the pepper market, which has been gaining continuously on lower availabilit of pepper. Indian market is trading at a premium compared t o the global market and has been importing pepper from Vietnam in the last three months. Global prices have not softened and continue to remain firm in spite of good exports by Vietnam. Vietnam has exported nearly 60,000 tonne during the January-May period. Exports t hrough cross border trade which is not documented have also found their way to t he buyers, Kishore Shamji, one of the senior exporter and member of the India Pep per and Spice Trade Association said. He feels that the global market is looking for cues from the Indian market, which is highly priced. According to Kotak Commodity Services, Indian pepper (MG-1) is quoted at $ 6,600 per tonne (c&f) at New York, Vietnam s Asta is quoted at $ 5,850 per tonne (fob), Indonesia Asta at $..6,100-6,150 and Brazil B-1 Asta at $ 6,200 per tonne. Dome stic spot prices moved from R21,500 per quintal to R31,000 per quintal in few da ys. On Friday evening spot price for pepper was recorded at R286 per kg. Buyers a re covering the bare necessity and are not long. Demand is there and it will sup port the price in the coming days, P Nandakumar, a trade consultant from Kochi sa id. The demand from Asia led by China is increasing but is not reflected correspondin gly. Market is slowly shifting from the US and Europe to the South Asian countri es where disposable income is increasing, he said. India imported nearly 3,000 tonne of pepper from Vietnam during the March-May pe riod, he added. Nandakumar feels that the Indian demand is also understated. Higher eating out by a large section of the society and changes in lifestyles have increased the con sumption of spices and flavoring agents, he said. According...to Jakarta-based International Pepper Community, India is estimated to import 13,250 tonne of the commodity and export nearly 19,000 tonne during 20 11. It still remains the largest consumer of pepper from the producing countries with domestic consumption estimated at 45,000 tonne, which is marginally higher by 1,000 tonne from 2010. Indian production is projected to decline marginally by 2,000 tonne to 48,000 tonne during 2011. Indonesian is not currently offering any black pepper their pepper comes to the m arket by July. Indonesia is only selling white pepper currently, Nandakumar said. Faiyaz Hudani Kotak Commodity Services feels that the crop arrivals in Indonesi a and Brazil would not make much difference as reports suggest lower crop in bot h countries. Weather conditions in Indonesia are not conducive for pepper and we expect lower crop. Similarly, in Brazil the pepper crop would be less on less ac

reage, he added. He expects the domestic market to...