Pepper February delivery dropped Rs 340 and settled at Rs 22280/quintal due to arrivals from the fresh crop and subdued overseas demand due to higher prices of Indian produce. Tight supply position against strong demand was witnessed in the global markets. Fresh arrivals from new crop were not much as harvesting delayed in Kerala due to untimely rains.

Domestic demand from the north Indian buyers during the winter season is strong. In India, the third largest pepper producer in the world after Vietnam and Indonesia, the crop is harvested from December to February but this year was delayed due to unseasonal rain. At the Indore spot market soyoil edged up by 0.15 rupee to 640.5 rupees 10 kgs.

The contract touched the intraday high of Rs 22740/quintal while low of Rs 22201/quintal. Now support for the pepper is seen at 22074 and below could see a test of 21868. Resistance is now likely to be seen at 22613, a move above could see prices testing 22946. Trading Ideas: Pepper trading range is 21877-22955. Pepper dropped due to arrivals from the fresh crop and subdued overseas demand . Pepper looks to test support at 22093 and resistance is seen at 22632. NCDEX accredited warehouses pepper stocks rose by 60 tonnes to 2156 tonnes. Spot pepper gained 100 rupees to 22286.65 rupees per 100 kg in Kochi market.