Pepper moves down as long liquidation continues

Despite the strong demand and lower arrivals, Indian Pepper futures dipped on profit selling as traders stayed away due to the premium prices of Indian pepper in the global markets.

The NCDEX Pepper August delivery eased from the previous high of Rs. 29690 to Rs. 29135 per 100 kg. The contract is currently trading at Rs. 29276, down Rs. 71 over the last close. The contract moved in the range of Rs. 29360-29135 level. The open interest dipped 0.31% to 9,384 tonnes and volume traded as of now stood at 890 tonnes.

Technically, the contract has next support at Rs. 29030, Rs. 28850 and the resistance is at Rs. 29400, Rs. 29700 per 100 kg.

As per the latest updates from the Brazilian Pepper Trade Board, Indonesia Asta offered at $6750 fob Panjang, India at $6900 fob Cochin and Vietnam Asta at $6450 fob Hcmc. Brazilian ASTA quoted at $ 6,300 and B2 500gl clean at $6,100 for shipments September onwards. Vietnam prices were unchanged at $5,600 – 5,700 for the 500gl FAQ. Brazil seems to have been the cheapest in ASTA quality and Vietnam in low priced end.

According to the International Pepper Community, world pepper output this year will fall by about 6,500 tonnes against 2010 to 310,000 tonnes due to unfavorable weather conditions and pests in several producing countries. According to estimation by Spices Board, production of pepper in India in 2010-11 is projected to be 48 thousand tonnes over 50 thousand tonnes last year.

Tags: Vietnam Pepper, Vietnam Pepper prices

Posted by VBN on Aug 5 2011. Filed under Agriculture. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry