UPDATES ON OCT 6 2008

OCT 6 MONDAY

PEPPER

SHORT TERM TREND : BEARISH

LONG TERM TREND : BEARISH

S1 RS 12900 , S2 RS 12750

R1 RS 13250 , R2 RS 13400

STAY SHORT.

Pepper futures drop despite strong fundamentals.

The pepper future market last week witnessed

high volatility and prices continue to decline

after mid week even as thge fundamentals were

remaining strong.

Tight supply position in all the origins coupled with

indications of potential demandin the last quarter

of the current year , appears to have pushed up

the price in other origins.

Availability of black pepper in the market also

appears to be tight.

Indications are that many of the buyers have not

covered for the last quarter of the year while

at least 70 % of the next years requirements

also would have to be covered.

All contracts fell during the week and the decline was

from Rs 387 to 499 a quintal.

All the three contracts dropped below the spot

price of Rs 13800 a quintal.

Widening gap between the futures and the spot

price is not a good sign.