Pepper February delivery gained Rs 290 and settled at Rs 29800/quintal on short covering though gains were limited weighed by higher local availability and weak export demand on supplies from competing countries like Vietnam.
Supplies have started in small quantities from the new season crop in the southern Kerala and Karnataka states. Industry officials are estimating 43,000-45,000 tonnes of domestic Pepper output for 2012, compared with 49,000 tonnes last year.
Buyers are reportedly waiting for the new crop arrivals from Vietnam in mid-Feb before making fresh significant queries.
Indian arrivals have started. Indian Pepper rates are reportedly competitive in the global markets but demand has not picked up as traders wait for further corrections in prices.
Demand from the overseas and domestic buyers remains dull currently as buyers remain absent from the market.
According to International Pepper Community (IPC) exports of Black Pepper during January to October 2011 from six major exporting countries (Brazil, India, Indonesia, Malaysia, Vietnam and Sri Lanka) was around 2.04 lakh tonnes a decline of 4.6% as compared to 2.14 lakh tonne in the same period last year.
Spot Pepper dropped -110.55 rupees to 30889.45 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 29885/quintal while low of Rs 29045/quintal.
Now support for the pepper is seen at 29268 and below could see a test of 28737. Resistance is now likely to be seen at 30108, a move above could see prices testing 30417.
Trading Ideas:
Pepper trading range for the day is 28737-30417.
Pepper gained on short covering though gains were limited weighed by higher local availability
Supplies have started in small quantities from the new season crop in the southern Kerala and Karnataka states
NCDEX accredited warehouses pepper stocks dropped by 29 tonnes to 3364 tonnes.
Spot pepper dropped -110.55 rupees to 30889.45 rupees per 100 kg in Kochi market.
Courtesy: Kedia Commodities
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