Pepper March futures prices witnessed huge volatility during Thursday’s trading session. Futures started the day on positive note but later on prices fell drastically on touch lowest level for the day.
However, heavy speculative activity ahead of current month expiry pushed prices in higher side towards the closing.
Outlook
Pepper March futures prices are expected to continue the positive trend on lower level buying in far month contracts.
Tight availability at spot market of Kochi might also support the uptrend.
Slight fall in Indian pepper prices might also support the prices. Indian parity in the international market was at $6,400-6,425 per MT and $6,700-6,725 per MT (c&f) for Europe and US respectively
According to IPC’s estimates, Indian pepper production is expected to decline by 10% to 43,000 tones
World's first global black pepper futures contract will by launched today by the Singapore Mercantile Exchange (SMX)
Global pepper production is expected to rise by 7% amid higher production projected in Vietnam
According to derivative analysis, prices, volumes and open interest have increased. It indicates that Market is attracting larger numbers of traders willing to open positions from the long side and hold them.
Traders are more confident that prices will continue to climb in favor of a working long
Courtesy: Karvy Commtrade Ltd.
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