FUNDAMENTALS

Black pepper markets at Kochi were steady amid zero arrival and offtake. The domestic demand which has been sluggish due to heavy rains and floods in North India, is expected to pick up during ensuing festival and winter season. The importers are staying away from the market eyeing the fresh harvest in Indonesia and Brazil. Lower production estimates in the major producing   countries and anticipation of increased domestic and overseas demand have helped to strenthen the market.   Global demand is estimated at 370,000 tonnes, while supply is placed at 310,000 tonnes, leaving a deficit of 60,000 tonnes in 2007.

TECHNICALS

A dark candle with some buying at lower levels is formed in the charts. MACD is rising hesitantly to emerge into the positive region, while RSI is falling in the neutral region. Prices closed above the EMAs. Stochastic is rising sharply into the overbought region, indicating some short to intermediate term firmness in the market. Pepper is expected to trade range-bound with an upward bias in the next session.

WEATHER:

Rain/thundershowers over few places in growing regions would be beneficial for the growth of newly planted as well as old vines.