Pepper yesterday jumped against our expectation and roses by Rs 222 and settled at Rs 21731/quintal on a squeeze in daily supplies due to depleting stocks and expectations of late arrivals. Unseasonal rains would delay pepper arrivals in India's premier producing state, tightening supplies and keeping prices firm in the medium term, but it would not significantly affect production. In Kochi, a key market for the commodity in Kerala, pepper ended steady at 21,373 rupees per 100 kg. The contract touched the intraday high of Rs 21755/quintal while low of Rs 21461/quintal. Now support for the pepper is seen at 21543 and below could see a test of 21355. Resistance is now likely to be seen at 21837, a move above could see prices testing 21943.

Trading Ideas:

Pepper trading range is 21344-21932.

Pepper ended higher on a squeeze in daily supplies due to depleting stocks and expectations of late arrivals

Pepper looks to test support at 21521 and resistance is seen at 21815.

NCDEX accredited warehouses pepper stocks see at 1544 tonnes.

BUY PEPPER JAN @ 21600-680 SL 21480 TGT 21780-21950.NCDEX

Spot pepper dropped -0.2 rupees to 21373.3 rupees per 100 kg in Kochi market.