Pepper July contract gained Rs 80 and settled at Rs 40395/quintal on late short covering but a decline in overseas sales dampened sentiment. Overseas sales have been poor because Indian-origin pepper is priced higher in the global market compared with others. Supplies from other producing countries such as Indonesia and Brazil would start from June. Moreover, higher arrivals of the crop in International markets have been preventing prices from shooting up a lot. 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 rising a lot in the short term. According to reports, lower export demand on increased arrivals from Indonesia, Vietnam and Brazil in the global market has weighed heavily over the prices. India's pepper is offered at prices in the international market are being quoted at $7600 per qtl while, Vietnam and Brazil is offering its produce at $6,950 per tons and $7,000 per tons respectively. But restricted arrivals in the domestic market due to end of season has limited the loss. Spot pepper gained 174.3 rupees to 39563.15 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 40450/quintal while low of Rs 40000/quintal. Now support for the pepper is seen at 40113 and below could see a test of 39832. Resistance is now likely to be seen at 40563, a move above could see prices testing 40732.
Pepper trading range for the day is 39832-40732.
Pepper gained on late short covering but a decline in overseas sales dampened sentiment.
Overseas sales have been poor because Indian-origin pepper is priced higher in the global market compared with others.
NCDEX accredited warehouses pepper stocks gained by 100 tonnes to 1278 tonnes.
Spot pepper gained 174.3 rupees to 39563.15 rupees per 100 kg in Kochi market.
- Government to pay $8.1 billion fuel subsidy in fourth quarter
- Oil firms falls as government considers export parity pricing model
- Essar Oil to sign $1 billion financing co-operation deal with CDB
- ONGC may sell stakes in deep-water blocks to Shell
- Huge scope for improving Indian shale gas estimates: ONGC