Commodity Trading Tips for Pepper by KediaCommodity

Ajay Kumar Kedia 27 June 2012

Pepper Pepper yesterday traded with the positive node and settled 0.25% up at 41200 traded flat as pressure was mounting on subdued exports but slack spot supplies and dwindling stocks supported prices at lower levels. Exports have been poor because Indian-origin pepper is being offered at a premium compared to other suppliers. At Kochi, an important market in Kerala, spot pepper fell 45 rupees to 40,390 rupees. Industry officials estimate local pepper output in 2012 at about 43,000-45,000 tonnes, as against 49,000 tonnes last year. According to the latest updates from India Pepper and Spice Trade Association (IPSTA), Kochi, Pepper arrivals in Kochi Mandi increased to 200 quintals from 100 quintals, meanwhile off takes jumped to 200 quintals from 150 quintals. On the International front, better crop expectations from Indonesia and Sri Lanka and better crop and stock levels in Vietnam could keep prices subdued in the near term and prevent the rates from raising a lot in the short term. The latest report from the IPC says that, pepper prices dropped recently due to weak overseas demand and anticipation of crop from Brazil and Indonesia. The inventory levels are weak and there is wide gap in supply and demand estimates. In yesterday's trading session Pepper has touched the low of 40930 after opening at 41240, and finally settled at 41200. For today's session market is looking to take support at 40937, a break below could see a test of 40673 and whereas resistance is now likely to be seen at 41457, a move above could see prices testing 41713.