Pepper stays bullish

COMMODITY SPIKES

Strong fundamentals have once again pushed the pepper prices up. The futures closed the week at Rs 12,320 a quintal against the Monday's closing price of Rs 11,898, up 3.5 per cent.

As a consequence of holding stocks back in Vietnam, export inquiries are shifting to India. In the country the crop estimates are already lower than that of last year, which is making the overall market bullish, say analysts.

Commodity market had expected that Rs 12,100 could be a resistance level for pepper, which showed some stability a week back. However now, when the level was breached on Saturday, market sources are not ruling out the levels of Rs 12,600 to Rs 13,000 a quintal.

Market may see some correction once the prices shot up, but overall tone in pepper market is to stay bullish, technically as well as fundamentally, said market sources.

The harvest season is expected to start by the first week of next month, though in some areas it has already started. Peak arrival of pepper will start between mid-February and February end.