Pepper March delivery dropped Rs 1002 and settled at Rs 24051/quintal as weakening export demand triggered profit-taking, though lower supplies from the fresh crop limited the fall. Arrivals from the fresh crop has started in the spot markets of Kerala, but in very small quantities. Vietnam is the largest pepper exporter and producer in the world. In 2010, Vietnam earned $419 million from shipping abroad 116,000 tonnes of pepper and continued taking the lead in pepper exports worldwide. According to the Ministry of Agriculture and Rural Development, despite a year-on-year shrink of 13.3 per cent in volume, pepper export turnover rose 22.5 per cent mostly due to the global increase of pepper price. Spot pepper gained 459.8 rupees to 24426.65 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 25380/quintal while low of Rs 24051/quintal. Now support for the pepper is seen at 23608 and below could see a test of 23165. Resistance is now likely to be seen at 24937, a move above could see prices testing 25823.

Trading Ideas:

Pepper trading range is 23180-25838.

Pepper  dropped as weakening export demand triggered profit-taking

Pepper looks to test support at 23780 and resistance is seen at 24240

NCDEX accredited warehouses pepper stocks rose 35 tonnes to 2271 tonnes.

Spot pepper gained 459.8 rupees to 24426.65 rupees per 100 kg in Kochi market.