Commodity Trading Tips for Pepper by KediaCommodity

Ajay Kumar Kedia 29 October 2012

Pepper Pepper November contract dropped Rs 175 and settled at Rs 44000/quintal as almost negligible exports and hopes of higher than expected output due to revived rains, weighed on prices. However, thin domestic supplies and dwindling stocks prevented any sharp fall. Pepper output is now expected slightly higher than the previous year due to rainfall later in the season. The market remained calm, with limited activities as reflected in the volume of trade recorded in the Commodity Exchange. Average prices of Malabar, Sarawak and Sri Lankan black were relatively stable, with a slight decrease in the mid of the week. In Lampung, major portion of pepper harvested this year has been released, as reflected by significant increase in the volume of export from Lampung during the last three months. Local price of black pepper in Lampung experienced a marginal decrease this week. Price decrease was also recorded in Vietnam both in local as well as in fob. Prices in Brazil remained steady. Growers were not interested to sell at reduced prices, in view of smaller output. White Pepper prices in Bangka, Sarawak and Vietnam decreased marginally, except local price of Sarawak, which is reported stable. According to the latest updates from India Pepper and Spice Trade Association (IPSTA), Kochi, Pepper arrivals and offtakes were stood at 140 quintals. Spot pepper gained 75.65 rupees to 42757.15 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 44225/quintal while low of Rs 43910/quintal. Now support for the pepper is seen at 43865 and below could see a test of 43730. Resistance is now likely to be seen at 44180, a move above could see prices testing 44360.