Pepper January delivery dropped Rs 235 and settled at Rs 31700/quintal tracking a bearish spot market where demand was sluggish from local and overseas buyers, while full-fledged supplies from the new season crop are expected by January-end. Supplies from the new season crop have started arriving in small quantities and are expected to peak by the month end. Export demand is weak as overseas buyers are on vacation. Demand from the overseas and domestic buyers continues to remain dull as buyers remain absent from the market due to New Year holidays. Fresh arrivals from the domestic will gain momentum at the end of the month (January 2012). According to Spices Board of India, exports of pepper during April 2011- October 2011 stood at 13,750 tonnes as compared to 10350 tonnes in 2010-11, rise of 32.8%.According to International Pepper Community (IPC) exports of black pepper during January to October 2011 from six major exporting countries (Brazil, India, Indonesia, Malaysia, Vietnam and Sri Lanka) was around 2.04 lakh tonnes a decline of 4.6% as compared to 2.14 lakh tonne in the same period last year. Spot pepper dropped -23.55 rupees to 32429.4 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 31950/quintal while low of Rs 31455/quintal. Now support for the pepper is seen at 31453 and below could see a test of 31207. Resistance is now likely to be seen at 31948, a move above could see prices testing 32197.

Trading Ideas:

Pepper trading range is 31210-32200.

Pepper ended weak tracking a bearish spot market where demand was sluggish from buyers

Supplies from new season crop have started arriving in small quantities and are expected to peak by month end

NCDEX accredited warehouses pepper stocks dropped by 335 tonnes to 4456 tonnes.

Spot pepper dropped -23.55 rupees to 32429.4 rupees per 100 kg in Kochi market.