Pepper February delivery dropped Rs 460 and settled at Rs 29600/quintal weighed by arrivals from the new season crop in local spot markets and subdued export demand as traders awaited full-fledged new season supplies.
Supplies from the new season crop have started arriving in small quantities in southern Kerala and Karnataka states.
Absence of strong demand on the export front and falling Dollar vs Re rates kept pressure on the prices.
Buyers are reportedly waiting for the new crop arrivals from India and Vietnam in mid-Feb before making fresh significant queries.
In Vietnam Tet holidays started from end of last week through January 29.
Trading activity is expected to become normal by next week, in anticipation of Pepper harvest in Vietnam to begin in February.
In Sri Lanka, producer's price decreased further by 4%.In Bangka, local price of white pepper decreased marginally, while in Sarawak the local price was relatively stable.
Spot Pepper gained 57.35 rupees to 30997.35 rupees per 100 kg in Kochi market.
The contract touched the intra day high of Rs 30500/quintal while low of Rs 29065/quintal.
Now support for the pepper is seen at 28943 and below could see a test of 28287.
Resistance is now likely to be seen at 30378, a move above could see prices testing 31157.
Trading Ideas:
Pepper trading range is 28287-31157.
Pepper ended lower weighed by arrivals from the new season crop in local spot markets
Absence of strong demand on the export front and falling Dollar vs Re rates kept pressure
Supplies from new season crop have started arriving in small quantities in southern Kerala and Karnataka states
Spot pepper gained 57.35 rupees to 30997.35 rupees per 100 kg in Kochi market.
Courtesy: Kedia Commodities
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