Lower stocks of Pepper with Vietnam and Indonesia till fresh arrivals expected next year will support prices in the coming days. Pepper price parity in the international market of all the major origins is almost same. This may drive overseas buyers to India thereby, supporting pepper prices in the short term.
In medium to long term (December onwards) prices will depend on the stocks of pepper with the major suppliers particularly Vietnam and Indonesia.
Prices will also take cues from the Indian pepper production projections. According to market sources Indian Pepper production in 2011 is expected to be higher. This will pressurize the prices in the long term.
Spread between December and January contract is Rs.188 as compared to Rs.227 the previous day.
Technical Analysis
Prices closed below its 10-Day but above its 20-Day EMA indicating bullish trend.
The 14-Day RSI is at 68.3 and is in neutral region.
Outlook:
Pepper prices in the intraday are expected to trade firm due to improved buying from local stockists. In the short term (till November), Pepper prices will depend on global Black pepper availability and demand from the overseas and domestic market. In the medium to long term (December onwards), price trend will depend on demand from the overseas and domestic market, pepper stocks with major producers and Black pepper production estimates of in India and Vietnam of 2011.
(Source: http://www.commodityonline.com/futures-trading/technical/Pepper-zooms-on-global-market-19971.html)
Posts
0 comments