Pepper March futures prices are expected to continue the positive trend on lower level buying in far month contracts.
Limited availability across the spot market might also add to the uptrend.
With depreciation in Indian rupee Indian parity have declined a bit which might 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 trade sources, looking at the arrivals at spot front production might be lower than estimated
From today onwards delivery margin will be applicable on current contract which might result in further shifting of positions in far month contracts
Global pepper production is expected to rise by 7% amid higher production projected in Vietnam
According to derivative analysis, prices and open interest have increased while volumes have declined. It indicates that market is attracting late buyers & early shorts; market is vulnerable to a sharp correction but likely that that correction will be bought creating a buy point for uptrend.
Pepper NCDEX Mar-12 support: 29398 29595 resistance: 29993 30154 Trading Range: 29250-30480
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