Pepper after the weekly sell off on Saturday market again showed more selling pressure breaking 13000 marks as new crop arrivals weighed on prices. Export demand also remained weak along with poor domestic off take which further hurt sentiment. Arrivals are already delayed this year and even the harvest from Vietnam which comes in the month of march is expected to be delayed this year. Tight global supply situation may push the prices to positive side. Spot pepper fell by over 38 rupees to end at 13,524.1 rupees per 100 kg in Kochi. February delivery dropped Rs -294 and settled at Rs 12825/quintal. The contract touched the intra day high of Rs 13264/quintal while low of Rs 12726/quintal. Now support for the pepper is seen at 12613 and below could see a test of 12400. Resistance is now likely to be seen at 13151, a move above could see prices testing 13476.

Trading Ideas:

Pepper trading range is 12400-13476.

Pepper dropped as selling pressure mounted, and liquidation in prices is because of speculative selling

Arrivals this season are less than expected and spot demand is good

Spot pepper gained by over 102 rupees to end at 13,869.35 rupees per 100 kg

WAIT FOR A JUMP TO SELL LOOK TILL 12650 LEVEL

NCDEX accredited warehouses stock of pepper fell by 30 tonnes to 4948 tonnes.