Pepper December delivery dropped Rs 220 and settled at Rs 34905/quintal on some profit-taking after gains triggered by hopes of early arrivals from the new crop.
Depleting stocks and tight supply situation, however restricted the downside. Indonesian Pepper exports are expected to fall sharply as production has declined drastically this year, an official says.
As per trade source, timely withdrawal of rainfall from major producing regions is supporting the harvest of new Pepper crops. The demand from north India and from overseas market is expected to rise due to winter season.
According to IPC, Brazil exported significant quantity of pepper during September-October 2011. In October Brazil exported 4700 tonnes of pepper compared to 4550 tonnes in September 2011.
Spices Board of India estimates the export of pepper from India to touch the target of 20000 tonnes in the year 2011-12.
Winter season demand from the north Indian buyers and overseas demand for competitive Indian pepper is likely to support the Black Pepper in near term ahead of the mid December, normal arrival period for pepper in plains in Kerala. Prices may witness some correction once the arrivals start in Plains in Kerala. Spot Pepper dropped -42.1 rupees to 34636.85 rupees per 100 kg in Kochi market.
The contract touched the intra day high of Rs 35180/quintal while low of Rs 34760/quintal. Now support for the pepper is seen at 34717 and below could see a test of 34528. Resistance is now likely to be seen at 35137, a move above could see prices testing 35368.
Trading Ideas:
Pepper trading range is 34510-35350.
Pepper slipped on some profit-taking after gains triggered by hopes of early arrivals from the new crop
Indonesian pepper exports are expected to fall sharply as production has declined drastically this year
NCDEX accredited warehouses pepper stocks dropped by 18 tonnes to 4781 tonnes.
Spot pepper dropped -42.1 rupees to 34636.85 rupees per 100 kg in Kochi market.
Courtesy: Kedia Commodities
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