Pepper January delivery gained Rs 498 and settled at Rs 23430/quintal on lower stocks with major producing countries and weaker daily supplies prompting buying. A likely delay in fresh arrivals due to unseasonal rains may also support with tightening supplies and keeping prices firm in the medium term, but it would not significantly affect production. International Pepper Community (IPC) expects 2011 world output at 309,952 tonnes lower than 316,380 tonnes in 2010 on account of a shift of cultivated areas to rubber in Malaysia and tin mining in Indonesia, carry forward stocks are expected to decline marginally to 94,582 MT vs 95,442 MT. Global exports have declined by 11% to 237,650 MT. Strengthening of Dollar vs Re could have positive impact on the export front, in spot pepper gained 370.45 rupees to 22563.3 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 23490/quintal while low of Rs 22875/quintal. Now support for the pepper is seen at 23040 and below could see a test of 22650. Resistance is now likely to be seen at 23655, a move above could see prices testing 23880.

Trading Ideas:

Pepper trading range is 22641-23871.

Pepper ended higher on lower stocks with major producing countries and weaker daily supplies.

Pepper looks to test support at 23280 and resistance is seen at 23655.

NCDEX accredited warehouses pepper stocks fell 90 tonnes to 1638 tonnes.

SELL PEPPER JAN BELOW 22850 SL 23000 TGT 22700-22560-22480.NCDEX

Spot pepper gained 370.45 rupees to 22563.3 rupees per 100 kg in Kochi market.