MUMBAI (Commodity Online): Pepper futures slipped on sluggish demand in the spot market Monday. The global demand for the commodity has shrunk due to cheap Brazilian pepper and the strong India rupee.
NCDEX pepper December contract opened the day at Rs 15201 against the last close of Rs 15229 levels.The counter hit the high of Rs 15295 and dipped to the session low of Rs 15150; it's near to previous low of Rs 15149, down Rs 79 from last close as of now
The open interest in the counter 1.94 percent, indicating fresh buying and the volume traded as of now stood at 944 tonnes. Now support for the pepper is seen at 15120 and below could see a test of 15039. Resistance is now likely to be seen at 15310, a move above could see prices testing 15419.
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Pepper December futures also ended marginally up on Saturday at 15229 rupees per 100 kg. The majority of the global stock is likely to be nearly over by December; hence from beginning of next year, we would witness tight supply.
Continuity of weak export demand as other countries quotes are lower as compared to India, has resulted into cash crunch among traders. International rate for Indian Pepper is still higher and hovering in the range of $3400- 3425 per tonne.
Price quote from Vietnam is lower at $3040-3100 per tonne, Indonesia $3000 per tonne and Brazil $2950-2975 per tonne.
