NCDEX PEPPER SLIDES RS 625 ON STRONG SUPPLIES IN GLOBAL MARKET
DATE: 16/04/2012
Pepper futures extended the losses On NCDEX on strong supplies in the global market and weak overseas demand. The market activities were slow during the last week, although pepper harvest in Vietnam is now in a peak season. The slow movement was due to limited overseas demand. Buyers are expecting a lower price, while the farmers are not keen to sell pepper at reduced prices, having realized a better price during the previous crops season. Pepper prices prevailed during the week still relatively high, although marginal decrease has taken place, particularly in domestic market of producing countries. In Bangka, white pepper price increased marginally, while in Sarawak local price decreased by 2%. Stable price of white pepper was recorded in Vietnam. The NCDEX Black pepper for the May delivery plunged by Rs 625 per quintal to the session low of Rs 37400 and is currently trading at Rs 37500, down by Rs 525 or 1.46% over the last close. Technically, the May delivery is likely to find support at Rs 37400, Rs 37000 while resistance is at Rs 38500, Rs 39150 per quintal.
The NCDEX Black Pepper May delivery ended the last day down by 3.05% at Rs 38025 after moving in the range of Rs 39535-37805 per quintal and the open interest added 17.48% to 4,314 tonnes. The volume traded surged to 3,971 tonnes from 1,339 tonnes. The May delivery ended the last session down by 3.79% at Rs 36795 and the open interest dipped 29% to 1,808 tonnes. The NCDEX April delivery futures ware expiring on 20th of this month, therefore the market is likely to witness heavy volatility during the week.
Peak arrivals from the top producer Vietnam are likely to cap strong gains on Indian pepper prices. At the same time, low domestic stocks may support prices on a short term. As per the latest release from the international pepper community, Pepper market seems to remain calm and quiet for the second or even third week now. Prices declined substantially and stabilized in a range between 6,000 and 7,000 for lower qualities. Contributing to this stabilization could be a list of reasons among which the European and American buyers absence in a waiting mode for the price definition, the Vietnam harvest being almost completed (it is reported that almost 70% are collected),and also a growing attitude of Indian operators against the crazy speculation on the futures, which last week forced the government position itself with strong declarations against speculation. In fact India's parity fell to around U$ 7,300 from U$ 8,300 10 days ago. India's prices are still not competitive but are considered as a reference to origins like Indonesia and in some extent Vietnam to mark the Asta grade targets. POWERED BY: COMMODITY INSIGHTS
The NCDEX Black Pepper May delivery ended the last day down by 3.05% at Rs 38025 after moving in the range of Rs 39535-37805 per quintal and the open interest added 17.48% to 4,314 tonnes. The volume traded surged to 3,971 tonnes from 1,339 tonnes. The May delivery ended the last session down by 3.79% at Rs 36795 and the open interest dipped 29% to 1,808 tonnes. The NCDEX April delivery futures ware expiring on 20th of this month, therefore the market is likely to witness heavy volatility during the week.
Peak arrivals from the top producer Vietnam are likely to cap strong gains on Indian pepper prices. At the same time, low domestic stocks may support prices on a short term. As per the latest release from the international pepper community, Pepper market seems to remain calm and quiet for the second or even third week now. Prices declined substantially and stabilized in a range between 6,000 and 7,000 for lower qualities. Contributing to this stabilization could be a list of reasons among which the European and American buyers absence in a waiting mode for the price definition, the Vietnam harvest being almost completed (it is reported that almost 70% are collected),and also a growing attitude of Indian operators against the crazy speculation on the futures, which last week forced the government position itself with strong declarations against speculation. In fact India's parity fell to around U$ 7,300 from U$ 8,300 10 days ago. India's prices are still not competitive but are considered as a reference to origins like Indonesia and in some extent Vietnam to mark the Asta grade targets. POWERED BY: COMMODITY INSIGHTS
No comments:
Post a Comment