Pepper February futures prices are expected to extend the down trend amid poor export activity.
According to trade sources, interstate buyers are quoting lower prices for fresh crop in anticipations of further fall in prices in coming days. High moisture content in fresh crop is also pressurizing the prices.
Indian pepper prices in global market are quoted at $6400 & $6700 per MT for MG-1 grade for Europe & US FOB as compared to $5800-5850 per MT for 550 g/l quoted by Vietnam. Therefore, export demand for Indian pepper is remaining very sluggish
As per data released by Spices board, during Apr-Nov, 2011 Pepper export from India were reported up by 43% to 17,000 tonnes against the same period last year
According to derivative analysis, prices, open interest and volumes have declined. It indicates that the price decline is being caused by liquidations of positions. Due to prevailing volatility small traders are exiting their positions.
Pepper NCDEX Feb-12 support: 28723 29039 resistance: 29716 30011 Trading Range: 28900-29950
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