Pepper To Witness A Minor Recovery

Pepper trading range for the day is 36143-37983. Support for pepper is seen at 36497 and below could see a test of 36143. Resistance is now likely to be seen at 37417, a move above could see prices testing 37983.

Global exports expected to rise to 2.46 lakh tonnes vs 2.42 lakh tonnes in 2011. Spot pepper dropped 91.25 rupees to 37693.75 per 100 kg in Kochi market. The contract touched the intra day high of Rs 37630/quintal while low of Rs 36710/quintal as per Kedia Commodities.

Pepper futures prices are projected to witness a small recovery on short covering during early trading hours. However, later on prices might turn down on back of bearish spot market sentiments. According to trade sources, big market players are trying to keep prices under pressure as they are expecting export demand to emerge at lower levels with a fall in Indian prices.

70-80% harvesting has been completed in Vietnam, farmers and dealers in Vietnam are holding back their produce which is driving global pepper prices on higher side.

With Indian production expected lower due to adverse weather, lower acreage and a fall in productivity, any rise in exports could support the prices from a medium to long term point of view. 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%.

Turmeric Short-Term Trend Volatile

Turmeric trading range for the day is 3431-3651. Support for turmeric is at 3473 below that could see a test of 3431. Resistance is now seen at 3583 above that could see a resistance of 3651.

In Nizamabad, a major turmeric market, price ended at 3265.65 rupees dropped by 43.85 rupees. Market has opened at 3600 & made a low of 3500 versus the day high of 3610. The total volume for the day was at 9415 lots and the open interest was at 31775.

Turmeric prices are expected to trade on a negative note extending previous losses on back of poor demand from exporters and local traders in absence of fresh orders. However, some stockists are taking advantage of this situation and they are buying in small quantity at lower rates; but prevailing arrivals and overall demand at still not supportive for prices and might keep prices under pressure until any fresh orders arrive.

Traders expect the short-term trend to remain volatile but any rise in demand could perk up prices that had fallen significantly over last few months due to high arrivals in the mandis. Holding of stocks by Stockists however could support the rates in coming weeks and expectations of exports picking up in coming weeks too could support prices. Higher production prospects and better stocks could however keep pressure on prices as markets trade with high volatility.