Pepper February delivery gained Rs 235 and settled at Rs 23115/quintal on lower supplies and depleting stocks in the country, lower availability of the produce with most pepper producing countries also supported prices. But other view is also prevails in the market where traders are waiting for some more corrections before initiating fresh demand in the mandis, overall trend had remained moderately up as rains in growing areas have reportedly affected the productivity adversely and this could support the prices from a medium term point of view. IPC has predicted 2011 crop to be lower by 2% at 309,952 MT, carryforward stocks are expected to decline marginally to 94,582 MT vs 95,442 MT. Global exports have declined by 11% to 237,650 MT. Indian production expected to decline to 48,000 MT. Strengthening of Dollar vs Re could have positive impact on the export front Vietnam is having low stocks as per reports - that could result in export demand shifting to India. Spot pepper gained 106.25 rupees to 22481.25 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 23250/quintal while low of Rs 22800/quintal. Now support for the pepper is seen at 22860 and below could see a test of 22605. Resistance is now likely to be seen at 23310, a move above could see prices testing 23505.

Trading Ideas:

Pepper trading range is 22615-23515.

Pepper gained on lower supplies and depleting stocks in the country

Pepper looks to test support at 23000 and resistance is seen at 23260.

NCDEX accredited warehouses pepper stocks gained 126 tonnes to 1885 tonnes.

Spot pepper gained 106.25 rupees to 22481.25 rupees per 100 kg in Kochi market.