NCDEX Pepper Tips

Pepper rebounded from the three consecutive sessions of losses lead by addition of fresh long positions amid expectation of festive demand. The NCDEX Pepper November contract ended the session higher at Rs 44,250, up by Rs 370 or 0.84% over the last close.

Pepper arrivals increased to 750 quintals from 590 quintals and offtakes jumped to 800 quintals from 600 quintals. Black Pepper for ready delivery in Kochi, closed Tuesday's trading session on positive note with MG-1 at Rs 42,400, up by Rs 300 and Un-Garbled pepper at Rs 40,900, up by Rs 300 per 100 kg.

Pepper eased from high on weak export demand and strong local crop estimation for the coming crop year. Exports demand for Indian pepper in the international markets remained weak due to huge price parity. Festive season demand limited the downside. Farmers are unwilling to sell their stocks at lower levels. There are reports the next year crop will be slightly better around 50,000 tonnes as crop condition in Idukki in Kerala and Karnataka are likely to be better. The crop harvesting is expected to begin after mid December only. During January - September 2012, total export of pepper from Brazil was 18,515 mt worth USD 124.9 million, down 10% in quantity, but increase in value by 12% over same period last year. The decrease in export reflected the available stock in Brazil was limited. The pepper production in Brazil this year is expected to be lower. Smaller crop in June/July in Espirito Santo has already confirmed the decrease and output of pepper crop in Para is also anticipated lower. Brazilian crop might be of around 28,000-30,000 tons this year and Indonesian crop is likely to be better this year. Not much dramatic movement is expected in pepper in the next fifteen days as Sial in Paris during this week and 40th IPC Meeting scheduled next week.

The NCDEX Pepper November contract slumped Rs 640 per quintal from the contract high of Rs 44500 level. The counter ended the session higher at Rs 44,250, up by Rs 370 or 0.84% over the last close. The contract traded in the range of Rs 43,710-44,425 per quintal.