Pepper December delivery dropped Rs 572 and settled at Rs 21595/quintal on profit taking at weekend and also there were some reports that low grade pepper from the plains were available cheaper weighed on prices. Export demand for Indian pepper continues to be weak due to higher prices in the international market. International Pepper Community (IPC) aims to raise Indian pepper output at 120,000 tonnes by 2014 on incremental increase in acreage. Spot pepper dropped -187.7 rupees to 21409.35 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 22250/quintal while low of Rs 21525/quintal. Now support for the pepper is seen at 21330 and below could see a test of 21065. Resistance is now likely to be seen at 22055, a move above could see prices testing 22515.

Trading Ideas:

Pepper trading range is 21065-22515.

Pepper ended lower on profit taking at weekend and availability of cheaper low grade pepper

Pepper looks to test support at 21400 and resistance is seen at 21750.

NCDEX accredited warehouses pepper stocks rose 50 tonnes to 2499 tonnes.

Spot pepper dropped -187.7 rupees to 21409.35 rupees per 100 kg in Kochi market.