NCDEX PEPPER TIPS

NCDEX PEPPER MARGINALLY UP IN EARLY TRADES, PROFIT TAKING MAY EMERGE

Date: 02/04/2012

The Black Pepper futures are trading with marginal gains in the early trading sessions on fresh buying at lower levels. In today's early trading sessions,the NCDEX Black pepper for the April delivery moved in the range of Rs39875-39005 and is currently trading higher at Rs 39465, up Rs 315 or 0.18% overthe last close. The open interest added 4% to 4,417 tonnes, indicating freshbuying. Technically, the counter is likely to find resistance at Rs 40050, Rs40650 while support at Rs 39000, Rs 38617 per quintal.

 Vietnam harvest is reported to be arriving to its peak. Serious concerns in India about the futures operations. The silence of American and European buyers and Vietnam dropping light pepper prices changed the market trend which might be easilyseen on graphics this week. India's parity despite being above the competition eased a little reportedly to$8,000 c&f. Vietnam is reported not selling Asta grade while Lampong Asta is said to be at $7,800. Brazil is very slow always willing the best possible price, eventually due to smallerstocks. One point to be considered is that some shipments from Brazil were muchdelayed therefore buyers are receiving now contracts booked last year whichprices are now cheaper than the present ones.

Pepper plummeted for the second week on heavy selling pressure triggered by weakspot demand, reports of Vietnam crop arrivals. The most active April pepper ended the week down by 5.58% at Rs39150 per quintal. As per the latest release from the IPC, the market declinedduring the last week and prices at origins with the exception of Sarawak have decreased. In India, the market was calm with limited activities. Lack of demand have pushed thepepper prices at the domestic market to fall by around 5%, while fob pricedecreased by 2%. In Vietnam, local price stood at VND 123,000 per kg during 26-29 February. However onFriday prices fell by VND 2,000 per kg. Fob prices of Vietnamese black werereported stable.

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