Pepper February futures prices are expected to continue the recovery during early trading hours. However, later on prices might turn down on subdued export demand due to higher Indian prices. Due to prevailing volatility in prices bulk buyers are also staying away from heavy buying.
Rising trade activity in Vietnam, world’s largest producer & exporter is also weighing on Indian prices
Global pepper production is expected to rise by 7% amid higher production projected in Vietnam
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
According to derivative analysis, prices have increased while open interest and volumes have declined. It indicates that investors are exiting their positions due to prevailing volatility.
Pepper NCDEX Feb-12 support: 28954 29215 resistance: 29930 30312 Trading Range: 29020-30350
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