FUNDAMENTALS

Black pepper markets at Kochi were following cues from the futures counter amid zero arrival and offtake. Weak domestic and overseas demand has resulted in declining pepper prices. Despite a global supply shortage, global pepper prices have declined considerably eyeing the new harvest of Indonesia and Brazil. Reports of increased prices in Indonesia and Brazil have helped to support the market.   Pepper exports rose 42 % to 10,100 tonnes. Global pepper supplies are expected to be around 329,000 tonnes this year while demand is estimated at 376,500 tonnes, leaving a deficit of 47,500 tonnes.

TECHNICALS

A hollow candle is formed with some selling at higher levels. Prices closed above the EMAs and MACD is rising in the negative region indicating medium-term strength. Both the RSI and Stochastic are rising in the neutral region, indicating short to medium term firmness in the market. Black pepper futures are likely to trade firm during the next session with possibility of a late downward movement.

WEATHER:

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

Click here to download full report

Reliance Money Disclaimer