Pepper November contract dropped Rs 75 and settled at Rs 43230/quintal  on expectations that late rains could improve yield and as higher prices of the Indian produce dampened demand in the global market. The delayed monsoon is expected to help the growth of pepper vines. In Kerala and Karnataka, the leading pepper producing states, the crop is harvested from December to February. Pepper output is expected to be higher because of revival in rains, and exports are very weak. On the International front, better crop expectations from Indonesia and Sri Lanka and better crop and stock levels in Vietnam have also prevented the rates from rising a lot in the short term Latest reports keep production estimates in Vietnam at 1.35-1.40 lakh tonnes vs 1.0-1.10 lakh tonnes of the earlier estimates. As per IPC latest estimates, global Pepper production expected to rise to 3,20,000 tonnes in 2012 vs 2,98,000 tonnes this year a rise of 7.2%. Domestic consumption of Pepper in the world is expected to grow by 3.03% to 1.25 lakh tons in 2012. Global Pepper production is expected to increase 7.2% to 3.20 lakh tons in 2012. The production increased due to sharp rise of 24% in Indonesian pepper output and in Vietnam by 10%. Spot pepper gained 11.75 rupees to 42161.75 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 43375/quintal while low of Rs 42915/quintal. Now support for the pepper is seen at 42972 and below could see a test of 42713. Resistance is now likely to be seen at 43432, a move above could see prices testing 43633.

Trading Ideas:

Pepper trading range for the day is 42713-43633.

Pepper ended down on expectations that late rains could improve yield and as higher prices dampened demand

Pepper output is expected to be higher because of revival in rains, and exports are very weak.

NCDEX accredited warehouses pepper stocks gained by 10 tonnes to 3623 tonnes.

Spot pepper gained 11.75 rupees to 42161.75 rupees per 100 kg in Kochi market.