Pepper February delivery dropped Rs 1245 and settled at Rs 29960/quintal tracking a fall in prices in competing Vietnam, and as arrivals from the new season crop start in local spot markets.
The prices was under pressure due to lack of buying support, the export demand too got impacted due to the appreciation in rupee. Pepper traders, particularly in Vietnam, Sarawak and Indonesia were celebrating Lunar New Year.
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. Supplies from the new season crop have started arriving in small quantities in southern Kerala and Karnataka states.
Spot pepper dropped -1021.1 rupees to 30940 rupees per 100 kg in Kochi market.The contract touched the intra day high of Rs 30650/quintal while low of Rs 29960/quintal.
Now support for the Pepper is seen at 29730 and below could see a test of 29500. Resistance is now likely to be seen at 30420, a move above could see prices testing 30880.
Trading Ideas:
Pepper trading range is 29500-30880.
Pepper dropped tracking a fall in prices in competing Vietnam, and as arrivals from the new season crop start
Supplies from new season crop have started arriving in small quantities in southern Kerala and Karnataka states.
NCDEX accredited warehouses pepper stocks dropped by 30 tonnes to 4058 tonnes.
Spot pepper dropped -1021.1 rupees to 30940 rupees per 100 kg in Kochi market.
Courtesy: Kedia Commodities
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