Pepper June delivery dropped Rs 342 and settled at Rs 30215/quintal on profit booking, though a tight supply situation in the domestic market arrested the downtrend. Diminishing local stocks and a similar situation in other pepper producing countries are also expected to support the recovery. According to Spices Board of India exports of pepper from India during April 2010- February 2011 stood at 16,600 tonnes as compared to 18,425 tonnes in 2009-10, decline of 10%. Spot pepper gained 386.7 rupees to 29533.35 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 30780/quintal while low of Rs 30120/quintal. Now support for the pepper is seen at 29963 and below could see a test of 29712. Resistance is now likely to be seen at 30623, a move above could see prices testing 31032.

Trading Ideas:

Pepper trading range is 29712-31032.

Pepper dropped on profit booking though a tight supply situation in domestic market arrested the downtrend

Pepper looks to test support at 29963 and resistance is seen at 30623.

NCDEX accredited warehouses pepper stocks rose by 71 tonnes to 3211 tonnes.

Spot pepper gained 386.7 rupees to 29533.35 rupees per 100 kg in Kochi market.