Pepper February contract gained Rs 85 and settled at Rs 34300/quintal on short covering triggered by emergence of spot demand at lower side. International Pepper Community projected production and export estimates of pepper in 2012 would be around 324,000 mt and 249,000 mt respectively, as against 317,700 mt and 246,200 mt in 2011. Taking into account of stock brought forward from 2011, import and domestic consumption in 2012, around 85,750 mt would be carried forward as stocks for 2013. Local pepper is expected around 50-55 thousand tonnes in 2012-2013 against 43,000 tonne in 2011-12. According to the latest updates from India Pepper and Spice Trade Association (IPSTA), Kochi, there was no pepper arrivals and offtake reported in the market. Indonesian crop is projected higher. Pepper harvesting will begin in end week of December in Kerala's Idukki district, the main pepper producing areas and arrivals will begin in second week of January. Indian pepper in the international markets remains weak as huge price parity also pressurized prices. Pepper futures turned bearish in October end on the reports of weak demand and reports of arrivals of fresh crop in some areas in Kerala. Spot pepper gained 8 rupees to 37731.5 rupees per 100 kg in Kochi market.. The contract touched the intra day high of Rs 34445/quintal while low of Rs 34050/quintal. Now support for the pepper is seen at 34085 and below could see a test of 33870. Resistance is now likely to be seen at 34480, a move above could see prices testing 34660.

Trading Ideas:

Pepper trading range for the day is 33870-34660.

Pepper ended with gains on short covering triggered by emergence of spot demand at lower side.

IPC projected production and export estimates of pepper in 2012 would be around 324,000 mt and 249,000 mt respectively

Local pepper is expected around 50-55 thousand tonnes in 2012-2013 against 43,000 tonne in 2011-12.

Spot pepper gained 8 rupees to 37731.5 rupees per 100 kg in Kochi market.