Pepper October delivery dropped Rs 166 and settled at Rs 18639/quintal due to lacklustre export demand as high prices rendered Indian produce uncompetitive. Hope of good production owing to favourable rains also pressured the prices. Export demand continues to be weak and at the same time, domestic demand is also not supportive. In Brazil, prices decrease both in local and fob. This may be because pepper harvest in Brazil is approaching the peak. In Vietnam and Sarawak, local price also decreased, while fob remained stable as last week. Spot pepper dropped -278.6 rupees to 18978.55 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 18816/quintal while low of Rs 18520/quintal. Now support for the pepper is seen at 18501 and below could see a test of 18362. Resistance is now likely to be seen at 18797, a move above could see prices testing 18954.

Trading Ideas:

Pepper trading range is 18362-18954.

Pepper ended weak due to lacklustre export demand

Pepper looks to test support at 18501 and resistance is seen at 18797.

In Vietnam and Sarawak, local price decreased, while fob remained stable as last week.

Spot pepper dropped -278.6 rupees to 18978.55 rupees per 100 kg in Kochi market.