PEPPER TUMBLES, NCDEX FUTURES TEST LOWS NEAR RS 40K
DATE: 12/06/2012
NCDEX Pepper futures tumbled today, giving up its latest gains as some profit selling emerged in the commodity. The spot prices had witnessed a stellar rise of nearly Rs 500 yesterday even as arrivals increased, primarily reflecting strong demand from stockists and exporters. The commodity had dropped to lows near Rs 38000 per quintal at the start of the month but found a good support at the EMA 100 and edged higher.
This drop was a combination of two factors- failure of the counter to break decisively above Rs 41000 per quintal mark and expected higher production in Vietnam compared to the earlier projection coupled with less of export enquiries. Some buying has been emerging in the futures thereafter but the movement has been choppy and is mostly due to technical triggers. NCDEX July futures ended at Rs 40315 per quintal yesterday, testing a high of Rs 40430 per quintal earlier in the day.
The counter tumbled in early moves today, testing lows of Rs 40000 per quintal and currently trades at Rs 40100, down Rs 215 per quintal or nearly half a percent. On technical counts, a break under Rs 40k could open up plenty of intraday shorts and could push prices down further.
This drop was a combination of two factors- failure of the counter to break decisively above Rs 41000 per quintal mark and expected higher production in Vietnam compared to the earlier projection coupled with less of export enquiries. Some buying has been emerging in the futures thereafter but the movement has been choppy and is mostly due to technical triggers. NCDEX July futures ended at Rs 40315 per quintal yesterday, testing a high of Rs 40430 per quintal earlier in the day.
The counter tumbled in early moves today, testing lows of Rs 40000 per quintal and currently trades at Rs 40100, down Rs 215 per quintal or nearly half a percent. On technical counts, a break under Rs 40k could open up plenty of intraday shorts and could push prices down further.
POWERED BY: COMMODITY INSIGHTS
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