Pepper February delivery gained Rs 445 and settled at Rs 32650/quintal on strong buying support and strong spot market.
In the local market, thin arrivals of the new crop has created apprehensions in the minds of the trade of a possible squeeze in supply and that in turn has resulted in spreading bullish sentiments in the market.
According to Spices Board of India, exports of Pepper during April 2011- November 2011 stood at 17,000 tonnes as compared to 11,850 tonnes in 2010-11, rise of 43.6%.
Prices are expected to be positive in long term on the back of reports of strong demand even through higher crop next year.
As per the latest updates from 39th Session of the IPC, total pepper production is projected up by 21,755 MT to 320,155 during 2012 while domestic consumption is higher at 124,870 MT against 121,200 MT last year. Exports are higher at 246,045 MT over 242,450 MT last year.
Stock carry forward from previous year is down by 16,740 MT and stock carry forward to next year is also down 3,750 MT.
According to the latest updates from India Pepper and Spice Trade Association (IPSTA), Kochi, Pepper arrivals and offtakes stood at 100 quintals.
Spot pepper gained 46.15 rupees to 31985 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 32670/quintal while low of Rs 31710/quintal.
Now support for the pepper is seen at 32017 and below could see a test of 31383. Resistance is now likely to be seen at 32977, a move above could see prices testing 33303.
Trading Ideas:
Pepper trading range is 31383-33303.
Pepper extended the gains on strong buying support and strong spot demand
Thin arrivals of new crop has created apprehensions in the minds of the trade of a possible squeeze in supply
NCDEX accredited warehouses pepper stocks dropped by 69 tonnes to 4346 tonnes.
Spot pepper gained 46.15 rupees to 31985 rupees per 100 kg in Kochi market.
Courtesy: Kedia Commodities
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