Pepper August delivery gained Rs 488 and settled at Rs 29640/quintal as strong domestic demand against the tight supply in the domestic market supported the prices. According to the International Pepper Community, world pepper output this year will fall by about 6,500 tonnes against 2010 to 310,000 tonnes due to unfavorable weather conditions and pests in several producing countries. Vietnam shipped abroad 78,000 tonnes of pepper in the first seven months of the year, fetching US$420 million, equal to last year's total value. At the moment, Vietnam has almost completed this year's pepper harvest with an estimated output of 100,000-110,000 tonnes, equal to the volume of 2010, said VPA President recently. Spot pepper gained 338.45 rupees to 28738.45 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 29959/quintal while low of Rs 29200/quintal. Now support for the pepper is seen at 29240 and below could see a test of 28841. Resistance is now likely to be seen at 29999, a move above could see prices testing 30359.

Trading Ideas:

Pepper trading range is 28841-30359.

Pepper gained as strong domestic demand against tight supply in domestic market supported the prices

Strong domestic demand against the tight supply in the domestic market is bullish for pepper in long term

World pepper output this year will fall by about 6,500 tonnes against 2010 to 310,000 tonnes - IPC

Spot pepper gained 338.45 rupees to 28738.45 rupees per 100 kg in Kochi market.