India’s pepper crop in 2008 is estimated to be around 40,000 metric tons

Physically black pepper during the first day of the week traded steady to firm on emerging buying interest at lower levels. Adding to this recovery in prices at the futures counter also favored the recovery at the physical counter. While the prices at the upcountry market remained unchanged. The prices for all the varieties at the terminal market recovered by Rs.100/qtl and the garbled varieties were offered at Rs.11800/qtl. Around 20 tonnes were sold while the arrivals remained nil. Underlying buying interest is reported to be good at the terminal as well as the upcountry market with the good sales at the auction. The overseas demand is reported to be slow from the traditional buyers. Pepper at the physical counter is likely to trade range bound under the given circumstances.

TECHNICALS:Overall trend for the spice continuous to remain weak with the long term EMA’s suggesting weakness। Positive nature of MACD and prices closing slightly above the EMA’s is also leaving room for positive move in prices. Rising RSI along with formation of hollow candlestick suggests steady to firm opening. Hence going long on corrective dips with caution is likely to remain strategy for intraday outlook.

Isolated rain/thundershower is likely at a few places over Kerala, which is favorable for the crop at the growing stage.