Pepper futures slipped for the six trading sessions on the back of reports of Vietnam easing the prices of new crops and arrivals of Indian crops in the local market. The NMCE pepper for the February delivery ended the day at Rs 51,067, down Rs 383 or 0.74% over Friday`s close. Pepper futures are expected to extend the losses on profit taking and reports of flow of arrivals from India and Vietnam`s plan to sell at lower rates.
It is reported that the new crop light Pepper as well as heavy Pepper has started arriving in the interior markets in India. The new crop size of the Indian share is estimated only 45,000-48000 tonnes with very limited carry over stocks. As per the previous week reports, Vietnam pepper quoted $500-1000 per tonnes lower as compared to Indian Pepper. As per the latest release from the General Department of Vietnam Customs, Vietnam had exported 1,34,000 tonnes of pepper with value of USD900 million in the whole year 2013, up 14.90% and surged 13.40% respectively in volume and value terms over same period last year. Vietnam pepper cultivated area estimated higher at 51,100 hectare in 2013, over 48,200 hectare in the last year, recording an increase of 6%. The overall production is estimated at 1,22,100 tonnes in 2013, up from 1,16,000 tonnes, the production increased by 5.30%.
Pepper futures closed down the last six trading sessions with the counter falling almost 3.81% or Rs 2,012 per quintal during the last one week as selling pressure emerged in the counter. The counter closed settled the day at Rs 51,067, down Rs 383 or 0.74% over Friday`s close. Technically, the counter is likely to find support Rs 50850, Rs 50700 and resistance is at Rs 51200, Rs 51300 level.
Source : Capital Market