Pepper February delivery dropped Rs 515 and settled at Rs 32025/quintal due to sluggish demand from overseas buyers, as well as new season supplies in spot.
Supplies from the new season crop have started arriving in small quantities in southern Kerala and Karnataka states.
According to Spices Board of India, exports of Pepper during April 2011- November 2011 stood at 17,000 tonnes as compared to 11,850 tonnes in 2010-11, rise of 43.6%.
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.
Indonesian production expected to rise to 41000 tonnes up from 33000 tonnes.
Malaysian production also expected higher at 26500 tonnes vs 25600 tonnes.
Reports of farmers shifting to other more profitable crops have affected the production aspects for the crop in India.
Spot Pepper gained 94.4 rupees to 32227.75 rupees per 100 kg in Kochi market.
The contract touched the intra day high of Rs 32485/quintal while low of Rs 31940/quintal.
Now support for the pepper is seen at 31815 and below could see a test of 31605.
Resistance is now likely to be seen at 32360, a move above could see prices testing 32695.
Trading Ideas:
Pepper trading range is 31605-32695.
Pepper dropped due to sluggish demand from overseas buyers
Malaysian production also expected higher at 26500 tonnes vs 25600 tonnes
Exports during April 2011- November 2011 stood at 17,000 tonnes as compared to 11,850 tonnes in 2010-11.
Spot pepper gained 94.4 rupees to 32227.75 rupees per 100 kg in Kochi market.
Courtesy: Kedia Commodities
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