Commodity Trading Tips for Pepper by KediaCommodity

pepperPepper yesterday traded with the negative node and settled -2.99% down at 42970 on profit-booking after the gains seen last day, lack of demand from overseas buyers and prospects of higher crop creating pressure on higher side. According to Spices Board of India, exports of pepper in April 2012 fell by 47% and stood at 1,200 tonnes as compared to 2,266 tonnes in April 2011, Also exports demand for Indian pepper in the international markets remains weak due to huge price parity. The Spot as well as the Futures settled 0.45% and 0.95% higher on Tuesday. Spot pepper dropped 35 rupees to 42855 rupees per 100 kg in Kochi market. The arrivals in the spot market were reported at
75 tonnes while offtakes were 80 tonnes on Tuesday. Global Pepper production in 2012 is expected to increase 7.2% to 3.20 lakh tonnes as compared to 2.98 lakh tonnes in 2011 with sharp rise of 24% in Indonesian pepper output and in Vietnam by 10%. According to latest report pepper output in Vietnam is estimated to be 1.35 lakh tonne as compared to 1.10 lakh tonne estimated early in the beginning of year (2012). Brazil is also expected to produce
22,000 tn this year. Domestic consumption of Pepper in the world is expected to grow by 3.03% to 1.25 lakh tonnes while exports are likely to grow by 1.48% to 2.46 lakh tonnes in 2012. On the other hand production of pepper in India in 2011-12 is expected to decline further by 5% to 43 thousand tonnes as compared to 48 thousand tonnes in the last year. Production is lowest in a decade. Festive season demand is expected to support prices at lower levels. For today's session market is looking to take support at 42527, a break below could see a test of 42083 and whereas resistance is now likely to be seen at 43857, a move above could see prices testing 44743.

Trading Ideas:

Pepper trading range for the day is 42083-44743.

Pepper dropped nearly -3% on profit-booking after the gains seen last day, lack of demand from overseas buyers

Global Pepper production in 2012 is expected to increase 7.2% to 3.20 lakh tonnes as compared to 2.98 lakh tonnes in 2011.

Festive season demand is expected to support prices at lower levels.

Spot pepper remains unchanged at0 rupees to 42855 rupees per 100 kg in Kochi market.