Pepper February delivery gained Rs 215 and settled at Rs 22760/quintal on speculation that weather disturbance in South India could affect the arrivals in the mandis, while the 2011 crop are predicted to be lower by 2% from the previous season. Pepper arrivals from the new crop have started arriving at spot markets in Kerala, but prices are unlikely to fall sharply in coming months on thin supply and lower domestic stocks. Spot pepper gained 71.6 rupees to 22334.1 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 22932/quintal while low of Rs 22540/quintal. Now support for the pepper is seen at 22556 and below could see a test of 22352. Resistance is now likely to be seen at 22948, a move above could see prices testing 23136.

Trading Ideas:

Pepper trading range is 22378-23162.

Pepper gained on speculation that weather disturbance in South India could affect the arrivals

Pepper looks to test support at 22556 and resistance is seen at 22948.

Pepper arrivals from the new crop have started arriving at spot markets in Kerala

Spot pepper gained 71.6 rupees to 22334.1 rupees per 100 kg in Kochi market.