Pepper October delivery dropped Rs 594 and settled at Rs 18750/quintal due to likely higher production as monsoon was favourable and poor export demand. India's pepper exports in April-August 2010 fell 5 percent to 7,600 tonnes from the same period a year ago. Spot pepper dropped -256.15 rupees to 19262.5 rupees per 100 kg in Kochi market. Overall technically pepper closing below 19000 mark had opened the support level at 18480 & 18100 level. The contract touched the intraday high of Rs 19377/quintal while low of Rs 18700/quintal. Now support for the pepper is seen at 18508 and below could see a test of 18265. Resistance is now likely to be seen at 19185, a move above could see prices testing 19619.

Trading Ideas:

Pepper trading range is 18265-19619.

Pepper ended lower due to likely higher production as monsoon was favourable

Pepper looks to test support at 18508 and resistance is seen at 19185.

Spread between Pepper OCT & NOV contracts yesterday traded in the range of 164 to 193.

Spot pepper dropped -256.15 rupees to 19262.5 rupees per 100 kg in Kochi market.