Pepper December delivery dropped Rs 184 and settled at Rs 21880/quintal as weakening export demand weighed on sentiment, offsetting poor supplies and estimates of lower global production. Export demand is not strong but local buying is likely to pick up at lower levels. The International Pepper Community (IPC) expects 2011 world output at 309,952 tonnes lower than 316,380 tonnes in 2010 on account of a shift of cultivated areas to rubber in Malaysia and tin mining in Indonesia. Spot pepper gained 59.4 rupees to 21800 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 22196/quintal while low of Rs 21760/quintal. Now support for the pepper is seen at 21695 and below could see a test of 21509. Resistance is now likely to be seen at 22131, a move above could see prices testing 22381.

Trading Ideas:

Pepper trading range is 21492-22364.

Pepper ended lower as weakening export demand weighed on sentiment

Pepper looks to test support at 21700 and resistance is seen at 22000.

NCDEX accredited warehouses pepper stocks fell 321 tonnes to 2138 tonnes.

Spot pepper gained 59.4 rupees to 21800 rupees per 100 kg in Kochi market.