Pepper futures in NMCE advanced on supply concerns. Lower rain fall in the major growing regions and depreciation of currency underpins pepper price. Kerala, the largest producer of pepper in the country, has received nearly 44 per cent lower rainfall compared with its long-term avera ge during June 1 to July 15. Fears of new arrivals from from Indonesia and Brazil, push down pepper prices yesterday. Vietnam pepper association Tuesday confirmed that pepper out put in 2008 declined to 87,000 tonnes, compared with 90,300 tonnes last year. According to the Spices Board, total pepper output in India was 50,000 tonnes this year, almost steady compared to last year. In Vietnam, the largest producer and exporter, harvesting ended in June while in India, harvesting starts in December and continues to February.
August contract in NMCE traded in the range of Rs. 147.00– Rs. 150.60 and closed at 149.91 (146.98). Combined volume stood at 2122. Open interest decreased by 37 to 798. Pepper inventories in the NMCE accredited warehouses increased by 10MT to 1519 metric tonnes. Pepper spot price quoted at 14800 rupees up by 200 rupees per quintal, in Kochi.
INTRADAY OUTLOOK
NMCE Pepper (August) bullish above 149.75 next levels are 150.64 and 151.90. Bearish below 149.01 Next levels are 147.80 and 146.62.
TECHNICALS –NMCE-(INTRADAY-CALLS)
Pepper (August) Bullish above 149.75 bearish below 149.01.
