Pepper February contract gained Rs 220 and settled at Rs 36045/quintal due to strong winter demand and slack domestic supplies, though an estimated rise in output and weak exports restricted any sharp gains. Pepper output is likely to be higher this season due to expectations of good yields in the top producing states of Kerala and Karnataka. According to the latest updates from India Pepper and Spice Trade Association (IPSTA), Kochi, Pepper arrivals increased to 220 quintals from 120 quintals and offtakes jumped to 250 quintals from 120 quintals. Despite the higher crop estimations, the arrivals haven't picked sharply so far and winter season demand from north India is strong. However, pepper may face selling at higher side in the coming sessions once the arrivals pick up in good volume and weak export demand for Indian pepper. According to Vietnam Ministry of Agriculture and Rural Development (MARD) exports of pepper during Jan-Oct 2012 stood at 102,340 mt, lower by 12% as compared to 1,15,780 mt in the same period last year. Pepper imports by U. S. the largest consumer of the spice declined 26% during January-September 2012 period to 41,923 tn as compared to 52,489 tn in the same period previous year. Spot pepper gained 43.05 rupees to 38605.55 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 36245/quintal while low of Rs 35700/quintal. Now support for the pepper is seen at 35748 and below could see a test of 35452. Resistance is now likely to be seen at 36293, a move above could see prices testing 36542.

Trading Ideas:

Pepper trading range for the day is 35452-36542.

Pepper rose due to strong winter demand and slack domestic supplies, though weak exports restricted sharp gains.

Despite the higher crop estimations, the arrivals haven't picked sharply so far and winter season demand is strong

Pepper arrivals increased to 220 quintals from 120 quintals and offtakes jumped to 250 quintals from 120 quintals.

Spot pepper gained 43.05 rupees to 38605.55 rupees per 100 kg in Kochi market.