Pepper November contract gained Rs 230 and settled at Rs 43350/quintal on tight availability against the strong demand in the spot market. Pepper arrivals increased to 370 quintals from 280 quintals and offtakes jumped to 350 quintals from 300 quintals over previous close. India's total production of pepper during the year 2012 was estimated at 43,000 tonnes against 48,000 tonnes in 2011. India's crop dipped due to old vines, static acreage, low replanting and high labor cost. Besides, unfavorable weather conditions in 2011-12 affected the production. There are reports the next year crop will be slightly better around 50,000 tonnes as crop condition in Idukki in Kerala and Karnataka are likely to be better. Indian Pepper prices were not sustaining at higher levels due to the weak export demand for Indian parity due to its higher prices in the global markets. New crop from Indonesia is likely to reach in the market from mid September and crop size is expected around 25,000 tonnes against 30,000 tonnes last year. Global exports expected to rise to 2.46 lakh tonnes vs 2.42 lakh tonnes in 2011 Indonesian production expected to rise to 41000 tonnes up from 33000 tonnes. Malaysian production also expected higher at 26500 tonnes vs 25600 tonnes. Indian production expected to decline by 5000 tonnes at 43000 tonnes Latest reports from Spice Board of India indicates Pepper exports for April 2012 have fallen by 47% to 1200MT from 2266 MT in April 2011. Spot pepper gained 44.45 rupees to 42150 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 43375/quintal while low of Rs 42800/quintal. Now support for the pepper is seen at 42975 and below could see a test of 42600. Resistance is now likely to be seen at 43550, a move above could see prices testing 43750.

Trading Ideas:

Pepper trading range for the day is 42600-43750.

Pepper ended with gains on tight availability against the strong demand in the spot market.

India's total production of pepper during the year 2012 was estimated at 43,000 tonnes

NCDEX accredited warehouses pepper stocks gained by 205 tonnes to 3613 tonnes.

Spot pepper gained 44.45 rupees to 42150 rupees per 100 kg in Kochi market.