Pepper August delivery dropped Rs 53 and settled at Rs 20649/quintal as traders booked profits on the recent rally and on a drop in overseas demand. Some lower-level buying in the next session as the global availability of the spice is limited is expected. Vietnam, the world's largest producer and exporter of the spice is expected to produce 100,000 tonnes of black pepper in 2010, down 5 percent on year. Spot pepper gained 67 rupees to end at 20,614 rupees per 100 kg in Kochi, a major trading hub in Kerala. The contract touched the intraday high of Rs 20850/quintal while low of Rs 20400/quintal. Now support for the pepper is seen at 20416 and below could see a test of 20183. Resistance is now likely to be seen at 20866, a move above could see prices testing 21083.

Trading Ideas:

Pepper trading range is 20183-21083.

Pepper ended weak as traders booked profits and on drop in overseas demand

Support for the pepper is seen at 20420 and resistance is at 20860.

NCDEX accredited warehouses pepper stocks fell by 87 tonnes to 4166 tonnes.

In spot pepper prices rose by 67 rupees to at 20614 rupees per 100 kg