Pepper June delivery gained Rs 61 and settled at Rs 29251/quintal on a squeeze in supplies and low stocks. NCDEX has introduced a special addition of 10% on all long side positions of pepper which will be effective from May 27, 2011. However, prevailing tight supply of pepper at domestic as well as global front is likely to support the prices later in the day. As per trade sources, trend is also firm in Vietnam as they have sold around 40-50% (42,000 tons) till March of their production. Vietnam pepper planters are holding back their produce anticipating further rise in the prices. Spot pepper dropped -110.5 rupees to 28746.65 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 29625/quintal while low of Rs 28935/quintal. Now support for the pepper is seen at 28916 and below could see a test of 28580. Resistance is now likely to be seen at 29606, a move above could see prices testing 29960.

Trading Ideas:

Pepper trading range is 28580-29960.

Pepper gained due to squeeze in supplies and low stocks

Pepper looks to test support at 28916 and resistance is seen at 29606.

NCDEX accredited warehouses pepper stocks gained by 46 tonnes to 3615 tonnes.

Spot pepper dropped -110.5 rupees to 28746.65 rupees per 100 kg in Kochi market.