Pepper August delivery dropped Rs 506 and settled at Rs 20820/quintal on profit taking amid weakness in other spices. Fundamentals are still favorable for further uptrend on strong demand amid tight availability of pepper. Vietnam, the world's largest producer and exporter of the spice, is expected to produce 100,000 tonnes of black pepper in 2010, down 5 percent on year. Spot pepper gained 56 rupees to end at 20,856 rupees per 100 kg in Kochi, a major trading hub in Kerala. The contract touched the intraday high of Rs 21539/quintal while low of Rs 20566/quintal. Now support for the pepper is seen at 20411 and below could see a test of 20002. Resistance is now likely to be seen at 21384, a move above could see prices testing 21948.

Trading Ideas:

Pepper trading range is 20011-21957.

Pepper ended lower on profit taking amid weakness in other spices

Support for the pepper is seen at 20680 and resistance is at 20960.

NCDEX accredited warehouses pepper stocks rose by 60 tonnes to 4220 tonnes.

In spot pepper prices rose by 55 rupees to at 20855 rupees per 100 kg.