Investing.com - Financial Markets Worldwide

Pepper To Trade Sideways

ByCommodityOnline
Published 05/22/2012, 10:59 AM
Updated 05/14/2017, 06:45 AM
ANGL
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Pepper trading range for the day is 39380-41170. Support for pepper is seen at 39850 and below could see a test of 39380. Resistance is likely to be seen at 40745, a move above could see prices testing 41170. Spot pepper gained 888.95 rupees to 39428.95 rupees per 100 kg in Kochi market. 

Pepper prices in the intra-day may trade sideways with upward bias owing to local buying. However, reports of improved imports of cheap pepper from Vietnam into India -- and fragile overseas demand -- may cap a sharp rise in price. Reports of weak demand from the U.S. may also favour bears in the market.

The pepper June contract gained Rs 490 and settled at Rs 40320/quintal on thin supply in the spot markets along with physical demand. The contract touched the intra-day high of Rs 40700/quintal with lows of Rs 39805/quintal. 

According to Angel Commodities, spot prices extended gains of the previous day and settled 2.3% higher on Monday owing to buying by local stockists. Futures traced the Spot prices and settled 1.2% higher yesterday. There are reports that production in Vietnam, the largest producer of the spice, is expected to be revised to 1.35 lakh tonnes as compared to earlier estimate of 1.10 lakh tonnes. Harvesting of pepper in Vietnam is almost complete.

Pepper prices on the international market are quoted at $7600/tonne, while Vietnam was offering its produce at $6,950/tonne. Brazil was offering its pepper at $7,000/tonne.

Pepper extended its bullish tone led by strong positive undercurrents from the global arena. Vietnam prices leapt by over 2.5%, which aided the domestic-sentiment report by India Infoline.

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