Pepper November contract gained Rs 270 and settled at Rs 43555/quintal due to thin domestic supplies and lesser stocks, though hopes of an increase in output because of revived rains and weak exports weighed on sentiments. Low supplies in domestic markets and festive season demand are keeping pepper prices firm. The revival in the 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. 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. But higher export estimates as per Vietnam Pepper Association could perk up prices in medium to long term (exports expected at 120,000 tonnes up more than 20% in value) With Indian production expected lower due to adverse weather, lower acreage and a fall in productivity, any rise in exports could support the prices from a medium to long term point of view. Spot pepper dropped -70.6 rupees to 42129.4 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 43650/quintal while low of Rs
42940/quintal. Now support for the pepper is seen at 43113 and below could see a test of 42672. Resistance is now likely to be seen at 43823, a move above could see prices testing 44092.

Trading Ideas:

Pepper trading range for the day is 42672-44092.

Pepper gained due to thin domestic supplies and lesser stocks though hopes of weak exports weighed on sentiments

Low supplies in domestic markets and festive season demand are keeping pepper prices firm.

NCDEX accredited warehouses pepper stocks gained by 339 tonnes to 3750 tonnes.

Spot pepper dropped -70.6 rupees to 42129.4 rupees per 100 kg in Kochi market.