Pepper March delivery dropped Rs 779 and settled at Rs 23499/quintal tracking bearish cues from spot and on sluggish export demand. Pepper arrivals from the new crop have started in the spot markets in Kerala, but prices are unlikely to fall sharply in the coming months on thin supply and lower domestic stocks. Arrivals from the fresh crop has started in the spot markets of Kerala, but in very small quantities. According to International Pepper Community (IPC) report, export of black pepper from India during 2010(Jan- Dec) plunged 21.6% to 16,700 tonnes as compared to 21,300 tonnes in the previous year(2009). However, there are reports of higher imports of pepper into the country. Spot pepper dropped -380.4 rupees to 23466.65 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 24246/quintal while low of Rs 23425/quintal. Now support for the pepper is seen at 23201 and below could see a test of 22902. Resistance is now likely to be seen at 24022, a move above could see prices testing 24544.

Trading Ideas:

Pepper trading range is 22902-24544.

Pepper ended lower tracking bearish cues from spot and on sluggish export demand.

Pepper looks to test support at 23260 and resistance is seen at 23720

NCDEX accredited warehouses pepper stocks stood at 2351 tonnes.

Spot pepper dropped -380.4 rupees to 23466.65 rupees per 100 kg in Kochi market.