BLACK PEPPER

FUNDAMENTALS

Black pepper at the physical counter failed to sustain the recovery and slashed further. The prices for the spice at the terminal as well as the upcountry market traded weak on the back of fall at the futures counter. The prices for the both varieties declined by Rs.400/qtl and garbled berries to Rs.13400/qtl. However at the prevailing low levels the buying interest is seen emerging. Sellers continued to stay away. Indian parity eased by $100/tonne to $3100/tonne. Overseas buyers continued to remain quiet. Vietnamese 500 gl is offered at bottomed down price of $2500/tonne while ASTA is offered at 2900/tonne f.o.b. Indonesian holders are unwilling to compete and are quoting at $3400/tonnel. The overseas buyers are looking for further ease in prices. Pepper is likely to foresee slight recovery at the bottomed down prices in anticipation of emerging demand.

TECHNICALS

Pepper futures weakened further and tested fresh lows. Technically the prices are highly oversold and hence a recovery is expected any time soon. However the EMA’s and MACD are still favouring the bears. Hence prices are likely to extend weakness during early hours with the possibility of covering towards the close.

WEATHER

Rain/thundershowers are likely at many places over Karnataka and at Kerala, which is favorable for the crop at the growing stage.

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