Pepper August contract gained Rs 180 and settled at Rs 43350/quintal due to thin spot supplies on the back of lower output and dwindling stocks. Trend is positive as supplies are insufficient to meet the demand. In April, pepper exports fell 47 percent to 1,200 tonnes from a year ago. Fundamentals are supportive for pepper and are keeping prices firm. But an increase in supplies from Indonesia into the global market could weigh on sentiment. Reports that farmers in Vietnam are willing to hold their produce expecting higher prices also supported the prices while reports of arrivals from Indonesia and Malaysia capped sharp gains. 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. Exports of Pepper from Vietnam during January till mid of June 2012 is estimated around 62000 mt almost same as that of corresponding year last year. Latest reports keep production estimates in Vietnam at 1.35-1.40 lakh tonnes vs 1.0-1.10 lakh tonnes of the earlier estimates. 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. Spot pepper gained 89.75 rupees to 42045 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs
43670/quintal while low of Rs 43110/quintal. Now support for the pepper is seen at 43083 and below could see a test of 42817. Resistance is now likely to be seen at
43643, a move above could see prices testing 43937.
Pepper trading range for the day is 42817-43937.
Pepper ended higher due to thin spot supplies on the back of lower output and dwindling stocks.
Trend is positive as supplies are insufficient to meet the demand.
NCDEX accredited warehouses pepper stocks gained by 24 tonnes to 1696 tonnes.
Spot pepper gained 89.75 rupees to 42045 rupees per 100 kg in Kochi market.
BUY PEPPER AUG ABV 43280 SL 43050 TGT 43400-43560-43720. NCDEX (BTST)
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