Pepper October delivery dropped Rs 48 and settled at Rs 20875/quintal as a squeeze in supplies and lower stocks with major producing countries prompted buying, offsetting slack export demand. Absence of overseas demand may hurt prices at every rise and may prompt fresh selling. Spot pepper dropped 0 rupees to 0 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 21170/quintal while low of Rs 20740/quintal. Now support for the pepper is seen at 20687 and below could see a test of 20498. Resistance is now likely to be seen at 21117, a move above could see prices testing 21358.

Trading Ideas:

Pepper trading range is 20527-21387.

Pepper ended weak yesterday on slack export demand

Support for the pepper is seen at 20690 and resistance is at 21000.

NCDEX accredited warehouses pepper stocks rose 20 tonnes to 4288 tonnes.

Spot pepper gained 95.8 rupees to 20333.8 rupees per 100 kg in Kochi market.