Pepper February futures prices extended the bearish trend on fresh selling during Tuesday’s trading session. Futures started the day on negative note on continued corrections.
However, later on prices took smart recovery on short covering but failed to sustain the gains and resumed down trend.
Poor export demand along with fresh arrivals at terminal market pressurized the prices and futures prices ended on negative note.
Outlook
Pepper February futures prices are expected to continue the bearish trend on extended selling on cues from weak activity at spot market.
Due to prevailing uncertainty in prices most of the bulk buyers are staying away from market.
Despite of fall in Indian pepper prices strengthening rupee is keeping pepper quotations higher in global pepper market
Therefore, Higher Indian prices in global pepper market are also keeping export demand away from India
Daily arrivals at terminal market in Kerala are hovering in the range of 5-7 tones
Global pepper production is expected to rise by 7% amid higher production projected in Vietnam
According to derivative analysis, prices have increased while volumes and open interest have declined. It indicates that new money is coming into the market, showing aggressive new short selling. This scenario will prove out a continuation of a downtrend or bearish
Courtesy: Karvy Commtrade Ltd.
Looking for Trading Advisories? Visit tips.commodityonline.com
