Pepper yesterday gained by Rs 258 and settled at Rs 21893/quintal as  the reports of lower stocks are supporting the prices and traders anticipation are high for both exports and domestic demand to rise in coming weeks as it has been reported that Vietnam is having low stocks. Also Indian traders are reportedly holding onto stocks in anticipation of a rise in price in coming months. Vietnam, the world's largest pepper producer, is estimated to have a new crop production of 1,00,000 tonne which comes to the market by February 2011. Production estimate shows a marginal increase of 5,000 tonne as compared with figures of 2010. Spot pepper gained 213.4 rupees to 21456.25 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 22040/quintal while low of Rs 21600/quintal. Now support for the pepper is seen at 21649 and below could see a test of 21404. Resistance is now likely to be seen at 22089, a move above could see prices testing 22284.

Trading Ideas:

Pepper trading range is 21404-22284.

Pepper ended higher as  the reports of lower stocks are supporting the prices

Pepper looks to test support at 21700 and resistance is seen at 22000.

NCDEX accredited warehouses pepper stocks rose 17 tonnes to 2526 tonnes.

Spot pepper gained 213.4 rupees to 21456.25 rupees per 100 kg in Kochi market.