Pepper September contract gained Rs 25 and settled at Rs 41805/quintal on late short covering but sluggish overseas sales due to the higher price of Indian produce weighed on prices. Indian-origin pepper is offered at a premium of $800-$1,500 per tonne in the global market compared to competitors. Overseas buyers have been placing orders with pepper producers such as Indonesia and Brazil due to lower prices in those countries. Domestic demand is strong and there is short fall of nearly 51,000 tonnes in the global market, despite the increase in the global pepper output during the current year, this is likely to support the prices in long term. India's pepper exports slipped 47% to 1,200 tonnes in April 2012 and exports in value stood at Rs 4,473.60 lakh, down 18% over the last close. New crop from Indonesia is likely to reach in the market from September and therefore prices are likely to witness some selling once the market receives the crop. India's pepper exports slipped 47% to 1,200 tonnes in April 2012 and exports in value stood at Rs 4,473.60 lakh, down 18% over the last close. New crop from Indonesia is likely to reach in the market from September and therefore prices are likely to witness some selling once the market receives the crop. Spot pepper dropped -52.6 rupees to 40942.1 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 42165/quintal while low of Rs 41525/quintal. Now support for the pepper is seen at 41498 and below could see a test of 41192. Resistance is now likely to be seen at 42138, a move above could see prices testing
42472.

Trading Ideas:

Pepper trading range for the day is 41192-42472.

Pepper gained on late short covering but sluggish overseas sales due to higher price of Indian produce weighed.

Domestic demand is strong and there is short fall of nearly 51,000 tonnes in the global market

NCDEX accredited warehouses pepper stocks gained by 22 tonnes to 3208 tonnes.

Spot pepper dropped -52.6 rupees to 40942.1 rupees per 100 kg in Kochi market.