Fundamental Analysis Benchmark spot prices at Kochi tracked the Futures due to selling by the market participants. Melt down at the stock markets also led the fall in major commodities.
Demand from the overseas market is expected in the coming weeks. Further, buying in the domestic market is expected to progress in coming weeks. This may provide support to the prices.
Lower stocks of Pepper with the stockists and farmers in India coupled with probable delayed harvesting of Pepper in India may provide support to the prices.
Pepper production is expected either to be same as that of previous year or lesser marginally. Pepper production is estimated to be around 40-50 thousand for the year 2009. This may support the prices once fresh orders are placed from the overseas market in good quantity.
Technical Analysis Pepper prices (NCDEX Dec 08 Contract) closed at Rs.11,689 down by Rs.464/quintal as compared to Wednesday’s close of 12153.
Prices have a strong support at Rs.11,550. Breach of those levels may tend the prices to touch Rs. 11,330.
Prices closed below its 10–Day and its 20-Day EMA.
Outlook: Pepper prices may witness sideways movement with no fresh fundamentals to drive the prices in the intraday. In the medium term prices may find support and strengthen on expected demand from the domestic market whereas in the long term various other factors may determine the price trend such as stocks with Vietnam and India, their pepper production for the year 2009 and demand from the overseas market.
Courtesy: Angel Commodities
