Pepper October delivery gained Rs 115 and settled at Rs 37100/quintal as tight supply against the strong demand supported the black pepper to scale new highs. Last reports mentions that prices over U$D 8,000 from all origins with exception of Brazil where last trades were at U$D 7,600 but at the beginning of the week also some contracts at U$D 7,300 were booked. Growers are aware of the high export prices and are pushing farmgate prices further high. The Indian pepper futures shot up quite dramatically, hitting 36k levels though the excess gains in the last few days could be traced to a utterly weak undertone in the Indian rupee which plummeted to two year low against the US dollar. IPC forecast global production for the year 2011 would be around 310,000 tonnes with demand at 330,000 tonnes, resulting in a shortfall of 20,000 tonnes. Strong festive demand against the lower arrivals supported the bulls. In Jodhpur guarseed prices dropped -2.35 rupees to 4557.25 rupees per 100 kg. The contract touched the intra day high of Rs 37190/quintal while low of Rs 36535/quintal. Now support for the pepper is seen at 36693 and below could see a test of 36287. Resistance is now likely to be seen at 37348, a move above could see prices testing 37597.

Trading Ideas:

Pepper trading range is 36287-37597.

Pepper gained as tight supply against the strong demand supported the black pepper to scale new highs.

Growers are aware of the high export prices and are pushing farmgate prices further high.

International Pepper Community forecast global production for the year 2011 would be around 310,000 tonnes

Spot pepper gained 266.35 rupees to 35240 rupees per 100 kg in Kochi market.