BLACK PEPPER

FUNDAMENTALS

Black pepper markets at Kochi were weak amid zero arrival and offtake. Rains and floods in most part of the country are seen restricting the domestic demand. Domestic demand is expected to improve from late September on upcoming festival as well as winter season. Reports of lower production in the major producing countries, and expected overseas demand are likely to firm up the prices in the long term. Buyers are staying away from the market as they lack confidence due to recent volatility. This lack of buying interest is resulting in weakness in the short term.

TECHNICALS

A dark candle is formed in the chart. MACD is crossing into positive region, while Stochastic is flat in the overbought region, leaving scope for movement in either direction in the short and medium term. Stochastic is about to make a bearish cross over. Close below the EMAs, and a downward bound RSI indicate a weak market in the short to intermediate term. Black pepper futures are likely to trade weak in the next trading session.

WEATHER:

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

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