Pepper Futures Trade Above Rs 21k .

NCDEX Pepper spurted lead by short covering amid strong technical cues and strong demand. The benchmark September futures spurted above the strong resistance levels with the futures gaining more than Rs 428 or 2.07 percent from the last close. The counter is currently quoting at Rs 21110 and the open interest dipped 0.67 percent to 9,758 tonnes. Volume traded as of now stood at 3,997 tonnes.

India's pepper futures ended the last session marginally higher. The pepper for the September delivery on NCDEX ended the last session higher by 0.20 percent at Rs 20772 after moving in the range of Rs 20925-Rs 25081 per 100 kg.

September pepper contract was technically finding support in the level of Rs 20570 and at Rs 20250 meanwhile the counter has resistance at Rs 20975 and at Rs 21150 per 100 kg during the week.

The availability in India and Vietnam is limited while harvesting is under progress in Brazil and Indonesia. The domestic demand is very high in India and current demand is very high ahead of the festive season.

The total exports of pepper Vietnam during the first eight months of the year were 94,000 tonnes of pepper worth 314 million USD. The volume in exports dipped slightly 2.90 percent and value surged 35.60 percent over the same period last year respectively. Vietnam output was estimated lower by 20 percent at 90,000 tonnes this year.

Pepper exports from India during the period April-July 2010 surged 2 percent in volume terms to 6,750 tonnes and surged 8 percent in value terms to Rs 11,306.00 lakh.

Harvestings is in the progress in Brazil and Indonesia. In Lampung, the harvesting continued in July. Due to prolonged wet weather during ripening, the harvest has experienced a slight delay and anticipated to extend till August. The production of of light berries was expected to be higher and material from current crop arrive the market slowly.

Source : indiainfoline.com