Pepper March delivery dropped Rs 734 and settled at Rs 22865/quintal on continued selling pressure on weak export demand amid higher arrivals. Arrivals from the fresh crop have started in the spot markets of Kerala, but in very small quantities. There are reports that harvesting in Vietnam has commenced in small quantity. Arrivals are likely to gain momentum by March. Production of pepper in India in 2010-11 is projected to be 48 thousand tonnes (according to the Spices Board) as compared to 50 thousand tonnes last year. Spot pepper gained 28.3 rupees to 23447.05 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 23849/quintal while low of Rs 22806/quintal. Now support for the pepper is seen at 22498 and below could see a test of 22130. Resistance is now likely to be seen at 23541, a move above could see prices testing 24216.

Trading Ideas:

Pepper trading range is 22141-24227.

Pepper dropped on continued selling pressure on weak export demand amid higher arrivals

Pepper looks to test support at 22680 and resistance is seen at 23000

NCDEX accredited warehouses pepper stocks stood at 2743 tonnes.

Spot pepper gained 28.3 rupees to 23447.05 rupees per 100 kg in Kochi market.