Pepper June contract gained Rs 665 and settled at Rs 40415/quintal on the back of thin supply in the spot markets along with rising domestic demand. 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%. Reports of Indonesian Pepper production are still not clear and same as for Brazilian pepper production. However, production is estimates to be higher in Indonesia which might weigh on Indian pepper prices. As per IPC latest estimates, global Pepper production expected to rise to 3,20,000 tonnes in 2012 vs 2,98,000 tonnes this year
- a rise of 7.2%. Global exports expected to rise to 2.46 lakh tonnes vs 2.42 lakh tonnes in 2011. Indonesian production expected to rise to 41000 tonnes up from 33000 tonnes. However, global Pepper production in 2012 is expected to increase by 7.2 per cent to 3.20 lakh tonnes against 2.98 lakh tonnes in 2011. On the International front, better crop expectations from Indonesia and Sri Lanka and better crop and stock levels in Vietnam too could keep prices subdued in the near term. Spot pepper gained 260.15 rupees to 39532.35 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 40840/quintal while low of Rs 39625/quintal. Now support for the pepper is seen at 39747 and below could see a test of 39078. Resistance is now likely to be seen at 40962, a move above could see prices testing 41508.
Pepper trading range for the day is 39078-41508.
Pepper rose on the back of thin supply in the spot markets along with rising domestic demand.
Production is estimates to be higher in Indonesia which might weigh on Indian pepper prices.
NCDEX accredited warehouses pepper stocks dropped by 61 tonnes to 1151 tonnes.
Spot pepper gained 260.15 rupees to 39532.35 rupees per 100 kg in Kochi market.
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