Pepper December delivery dropped Rs 99 and settled at Rs 22409/quintal due to weak export demand, but concerns unseasonal rains may hit the yield and may also delay fresh arrivals restricted the losses. Estimates of lower world output amid a rise in consumption also limited the fall. The International Pepper Community (IPC) expects 2011 world output at 309,952 tonnes, lower than 316,380 tonnes in 2010, on account of a shift of cultivated areas to rubber in Malaysia and tin mining in Indonesia. Spot pepper gained 103.55 rupees to 22006.65 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 22630/quintal while low of Rs 22258/quintal. Now support for the pepper is seen at 22235 and below could see a test of 22060. Resistance is now likely to be seen at 22607, a move above could see prices testing 22804.

Trading Ideas:

Pepper trading range is 22060-22804.

Pepper ended weak due to weak export demand

Pepper looks to test support at 22200 and resistance is seen at 22600.

NCDEX accredited warehouses pepper stocks rose 45 tonnes to 2590 tonnes.

Spot pepper gained 103.55 rupees to 22006.65 rupees per 100 kg in Kochi market.