BLACK PEPPER

FUNDAMENTALS

Domestic black pepper extended previous weakness further. It was quoted lower by Rs. 100 per quintal in Kochi amid no arrivals as well as offtake. Demand continues to remain weak and consequently underpinned the decline in prices. Continuous weakness in pepper futures counter is also weighing down on the physical markets. Traders are expecting demand to improve shortly ahead of the festival season. Higher volatility in recent times have kept the buyers too 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 steady to weak opening and indecision in the market. The close below the 9-day as well as 18-day EMA is indicating a bearish trend in the market. 14-day RSI is in neutral region, leaving scope for both way movements. MACD has made a bearish crossover with its EMA in negative territory, supporting the weakness in the market. Volume has increased, while open interest has declined. Black pepper futures are likely to trade moderately upward initially following a steady to weak opening and downwards thereafter.

WEATHER:

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

Click here to download full report

Reliance Money Disclaimer