Pepper January delivery dropped Rs 272 and settled at Rs 21908/quintal weighed by tepid exports, though expectations of a likely delay in fresh arrivals due to unseasonal rains, which slowed harvesting, kept the downside limited. The International Pepper Community (IPC) expects 2011 world output at 309,952 tonnes, lower than 316,380 tonnes in 2010, due to diversion of cultivated land to rubber in Malaysia and tin mining in Indonesia. Spot pepper dropped -88.25 rupees to 21558.8 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 22184/quintal while low of Rs 21860/quintal. Now support for the pepper is seen at 21784 and below could see a test of 21660. Resistance is now likely to be seen at 22108, a move above could see prices testing 22308.

Trading Ideas:

Pepper trading range is 21665-22313.

Pepper ended lower weighed by tepid exports

Pepper looks to test support at 21780 and resistance is seen at 22100.

NCDEX accredited warehouses pepper stocks rose 17 tonnes to 1361 tonnes.

Spot pepper dropped -88.25 rupees to 21558.8 rupees per 100 kg in Kochi market.