Pepper December delivery gained Rs 60 and settled at Rs 21648/quintal due to projection of lower world output and rising consumption but lacklustre overseas demand limited the gains. Exporters are not willing to take deliveries due to weak exports. 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 dropped -354.2 rupees to 21242.85 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 22250/quintal while low of Rs 21360/quintal. Now support for the pepper is seen at 21255 and below could see a test of 20863. Resistance is now likely to be seen at 22145, a move above could see prices testing 22643.

Trading Ideas:

Pepper trading range is 20858-22638.

Pepper ended firm due to projection of lower world output

Pepper looks to test support at 21400 and resistance is seen at 21800.

NCDEX accredited warehouses pepper stocks rose 10 tonnes to 2509 tonnes.

Spot pepper dropped -354.2 rupees to 21242.85 rupees per 100 kg in Kochi market.