Pepper prices sideways to down on low trade

Fundamental Analysis

Benchmark Kochi markets of Pepper were quoted at slightly lower rates amidst slow trades at the domestic market and tracking Pepper futures.

Reports of reduction in the Pepper prices of Vietnam may shift overseas buyers to their nation. This may pressurize the prices in the short term.

Pepper futures declined due to selling by the market participants.

Pepper production in the Indian subcontinent for the year 2009 being lower may support the prices once the fresh orders are placed from the overseas market.

Fresh arrivals may gain pace by mid of February. This may however, pressurize the prices during that period.

Technical Analysis

Pepper prices (NCDEX March 09 Contract) closed at Rs.11, 529 down by Rs.441/quintal as compared to Thursday’s close of Rs. 11,970.

The 14-Day RSI is at 37.3 and is moving in sideways to down manner.

Outlook

Pepper prices may witness sideways to down movement due to sluggish trades and reduction in the Vietnam Pepper international parity prices. In the medium term Pepper prices may be determined by demand from the overseas as well as domestic market. In the long term various other factors may determine the price trend such as stocks with Vietnam, their pepper production for the year 2009 and demand from the overseas market.

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Courtesy: Angel Commodities