Indian pepper, lost in early trade on Tuesday on sluggish export demand and hopes of higher production, pared most of the losses on tight supplies, analysts said. Export demand is weak due to the global financial crisis as U.S imports most of India's pepper, said Faiyaz Hudani, an analyst with Kotak Commodity Services Ltd.
India shipped 12,750 tonnes of pepper in April-September, with a fall of 33 percent, due to higher Indian prices. Output in Karnataka, the country's second largest producer, may rise by 10-20 percent due to conducive weather, which was also weighing on the sentiment, analysts said. However, a tight supply situation and weak arrivals capped some of the losses, said Mehul Agrawal, an analyst with Sharekhan Commodities Pvt Ltd.Supplies are expected to remain tight till early December when the arrivals of the new crop start. December pepper contract is likely to get support at 10,700 rupees and face resistance at 11,700 rupees. Spot pepper fell 0.9 percent to 11,489 rupees per 100 kg in spices hub of Kochi in Kerala.
India shipped 12,750 tonnes of pepper in April-September, with a fall of 33 percent, due to higher Indian prices. Output in Karnataka, the country's second largest producer, may rise by 10-20 percent due to conducive weather, which was also weighing on the sentiment, analysts said. However, a tight supply situation and weak arrivals capped some of the losses, said Mehul Agrawal, an analyst with Sharekhan Commodities Pvt Ltd.Supplies are expected to remain tight till early December when the arrivals of the new crop start. December pepper contract is likely to get support at 10,700 rupees and face resistance at 11,700 rupees. Spot pepper fell 0.9 percent to 11,489 rupees per 100 kg in spices hub of Kochi in Kerala.
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