BLACK PEPPER

FUNDAMENTALS

Domestic black pepper remained weak at the start of this week. Prices were quoted lower by Rs. 200 per quintal in benchmark Kochi market amid no arrivals as well as offtake. Weak demand for the commodity was attributed to the decline in prices. Moreover, sharp fall in pepper futures prices has weighed down heavily on the physical market. Traders are expecting demand to improve shortly ahead of the festival season. Higher volatility in recent time has kept the buyers to away form the market. Global supply shortage and price competitiveness of Indian pepper has resulted into increased shipment from the country in the past few months. Long-term fundamentals remains firm, however, in short-term prices may see further decline on weak demand for the commodity.

TECHNICALS

Candlesticks pattern indicates weak opening and further downtrend. The close below the 9-day as well as 18-day EMA is indicating a bearish trend. 14-day RSI is moving downwards in neutral region, hinting further decline. MACD is about to make a bearish crossover with its EMA in negative territory, supporting the weakness in the market. Volume as well as open interest has increased. Black pepper futures are likely to trade downwards following a weak opening with possibility of some upward movements later.

WEATHER:

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

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