Pepper July contract gained Rs 75 and settled at Rs 40655/quintal on some buying support but gains were limited due to decline in overseas sales also dampened sentiment. Supplies from producing countries such as Indonesia and Brazil would start arriving by end-June. Industry officials estimate local pepper output in 2012 at 43,000-45,000 tonnes, compared with 49,000 tonnes last year. Strong demand against the fall in the production supported the uptrend in the pepper prices with prices breaching the resistance Rs 40400 per quintal. 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. Pepper prices zoomed both in the local cash market and commodity bourses on strong buying support. Pepper arrivals in Kochi Mandi increased to 120 quintals from 60 quintals, meanwhile offtakes jumped to 150 quintals from 60 quintals. India's National Commodity and Derivatives Exchange slashed special margin on long side chana contracts to 20 percent from 30 percent, and removed the additional margin of 5 percent on long and short positions, effective Friday. Spot pepper gained 137.2 rupees to 39722.2 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 40710/quintal while low of Rs 40070/quintal. Now support for the pepper is seen at 40247 and below could see a test of 39838. Resistance is now likely to be seen at 40887, a move above could see prices testing 41118.
Pepper trading range for the day is 39838-41118.
Pepper gained on some buying support but gains were limited due to decline in overseas sales also dampened sentiment.
Existing Special Margin of 10% on the Long side stands withdrawn on all the running contracts wef June 15, 2012.
Pepper prices dropped recently due to weak overseas demand and anticipation of crop from Brazil and Indonesia
Spot pepper gained 137.2 rupees to 39722.2 rupees per 100 kg in Kochi market.
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