Pepper yesterday traded with the negative node and settled -0.55% down at 41010 as fragile demand from the domestic buyers led Spot prices to trade steady. Exports have been poor because Indian-origin pepper is being offered at a premium compared to other suppliers. Spot pepper gained 66.5 rupees to 40390 rupees per 100 kg in Kochi market. Industry officials estimate local pepper output in 2012 at about 43,000-45,000 tonnes, as against 49,000 tonnes last year. According to the latest updates from IPSTA, Kochi, Pepper arrivals in Kochi Mandi increased to 200 quintals from 100 quintals, meanwhile off takes jumped to 200 quintals from 150 quintals. 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 raising a lot in the short term. 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). 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. In yesterday's trading session Pepper has touched the low of 41000 after opening at 41200, and finally settled at 41010. For today's session market is looking to take support at 40877, a break below could see a test of 40743 and whereas resistance is now likely to be seen at 41267, a move above could see prices testing 41523.
Pepper trading range for the day is 40778-41558.
Pepper slipped as overseas sales remained subdued on higher prices and fresh supplies.
Exports have been poor as Indian pepper is being offered at a premium compared to other.
Brazil and Indonesia are offering at lower prices in the global market with low overseas demand
Spot pepper gained 66.5 rupees to 40390 rupees per 100 kg in Kochi market.
BUY PEPPER JULY ABV 41150 SL 40900 TGT 41320-41540-41760. NCDEX
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