Pepper February delivery gained Rs 305 and settled at Rs 32135/quintal due to lower-than-expected supplies in spot, as farmers held back stock after prices fell more than 18 percent from their contract high hit on Oct. 10, while the market also expects a fall in output.
Supplies are very thin and unlikely to improve before the end of the month. Pepper prices may recover in absence of supply pressure.
Supplies from the new season crop have started arriving in small quantities in southern Kerala and Karnataka states.
Pepper exports during April-November rose 43 percent to 17,000 tonnes.
Demand remained moderate as higher arrival pressure in the mandis kept pressure on the prices.
Demand however is expected to recover in the coming weeks.
Weakness in Dollar however kept further pressure on the market rates for its adverse impact on exports.
Spot pepper gained 133.35 rupees to 31783.35 rupees per 100 kg in Kochi market.
The contract touched the intra day high of Rs 32305/quintal while low of Rs 31750/quintal.
Now support for the Pepper is seen at 31822 and below could see a test of 31508.
Resistance is now likely to be seen at 32377, a move above could see prices testing 32618.
Trading Ideas:
Pepper trading range is 31508-32618.
Pepper edged up due to lower-than-expected supplies in spot, as farmers held back stock
Demand however is expected to recover in the coming weeks
NCDEX accredited warehouses pepper stocks dropped by 51 tonnes to 4415 tonnes.
Spot pepper gained 133.35 rupees to 31783.35 rupees per 100 kg in Kochi market.
Courtesy: Kedia Commodities
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