Pepper February futures prices are expected to trade lower on cues from subdued spot market activity.
According to trade sources, no overseas export demand is coming for Indian pepper due to higher rate quoted as compared to Vietnam.
Despite of fall in Indian pepper prices strengthening rupee is keeping pepper quotations higher in global pep-per market.
Indian pepper production is estimated around 43000 tones down by 10% Y/Y , however, still prices are trading down amid lack of confidence among the trade due to prevailing speculative activities.
Global pepper production is expected to rise by 7% amid higher production projected in Vietnam.
According to derivative analysis, prices and open interest have declined volumes have increased. It indicates that participation at selling side is more and due to prevailing uncertainty in prices traders are exiting their positive at the end of the day.
Pepper NCDEX Feb-12 support:29519 29738 resistance: 30258 30507 Sell at 30030 TP 29200 SL 30660
Courtesy:Karvy Comtrade Ltd.
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