Pepper Tumbles Further On NCDEX

Pepper futures on NCDEX declined on the first trading session of the week on short selling amid weak export demand.

Pepper futures for the February delivery slumped by Rs. 134 or 0.58% to the session low ofRs. 22857 per 100 kg. The contract is currently trading at Rs. 22889 and the open interest added 1.81% to 9109 tonnes, indicating short selling. Volume traded as of now stood at 896 tonnes.

The contract has strong support at Rs. 22850-22725 and the next support is at Rs. 22500 per 100 kg. The contract has resistance at Rs. 23,000 per 100 kg.

During April-November 2010, a total quantity of 11,500 tonnes of pepper valued Rs. 208.50 crores has been exported from India as against 13,850 tonnes valued Rs. 217.70 crores of last year. The unit value of pepper has increased from Rs. 157.18 per kg in 2009-10 to Rs.181.30 per kg during 2010-11.

The market at sources was showed mixed response during the last week. In India and Vietnam local prices decreased, while in Lampung and Sarawak, the local prices increased. In Sri Lanka rises were more or less stable as last week. The price decreased in India and Vietnam was mainly influenced by on-going and on-coming harvesting respectively. In Kochi, local price decreased by 2% and 1% in fob. Futures prices also decreased by around 2-5%. In Vietnam, local prices decreased marginally, but fob price was stable. In Lampung local prices increased by 5% due to limited stock as material with farmers has exhausted.

In Sarawak, local prices also increased marginally, but fob was stable. In Brazil, the market was very calm as the most of the players are still in vacation and expected to return by next week. During the week, Brazil offered USD 4,345 per mt locally and USD 5,000 fob Belem (ASTA).

On the other side, the December crop in Espirito Santo which was expected to be above 5,000 tons, now is said to be of no more than 3,000 tons.

(Source: http://www.indiainfoline.com/Markets/News/Pepper-Tumbles-Further-On-NCDEX/3487214577)