Pepper September delivery gained Rs 328 and settled at Rs 19301/quintal as lower-level buying driven by dwindling stocks and thin arrivals offset poor overseas demand. Lower-level buying was seen towards the end. Overall supply position is very weak which is supporting prices at lower levels. In Kochi, spot pepper fell 534 rupees to end at 18,775 rupees per 100 kg. 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. The contract touched the intraday high of Rs 19348/quintal while low of Rs 18675/quintal. Now support for the pepper is seen at 18868 and below could see a test of 18435. Resistance is now likely to be seen at 19541, a move above could see prices testing 19781.

Trading Ideas:

Pepper trading range is 18406-19752.

Pepper ended higher on lower-level buying driven by dwindling stocks

Support for the pepper is seen at 19140 and resistance is at 19435.

Vietnam, is expected to produce 100,000 tonnes of pepper in 2010

In spot pepper prices fell by 534 rupees to at 18775 rupees per 100 kg