Demand to boost pepper

COMMODITY SPIKES

Despite the Friday's crash in the agri commodities market, there is an overall bullish sentiment in the pepper market due to overseas as well as domestic demand. Commodity analysts have kept their fingers crossed on the expected market movement next week.

According to them, Vietnam (one of the leading producers of pepper) has kept the prices of the spice at firm levels despite a better crop this season. This has resulted in small buyers shifting to the domestic pepper, thereby supporting prices in the local market.

On the technical front, commodity experts said if futures prices came below Rs 14,940 a quintal, the market would further fall on selling pressure. "On the other side, Rs 15,550 is good resistance for pepper futures. If this level is crossed, the commodity will see a rally again," they said.

Domestic demand has already picked up as offtake is rising in tandem with arrival pressure. On the National Commodity and Derivatives Exchange, the April pepper futures closed the weekend at Rs 15,375 a quintal against the previous close of Rs 15,128 a quintal.