Pepper August delivery gained Rs 465 and settled at Rs 28755/quintal as depleting stocks and lower supplies supported the sentiment. 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. According to estimation by Spices Board, production of pepper in India in 2010-11 is projected to be 48 thousand tonnes over 50 thousand tonnes last year. As per the reports more than 75% of Vietnam pepper exported while Brazil and Indonesia offers shipment for future months. Their crops are also estimated lower this year due to bad weather in the producing belts. Spot pepper dropped -46.65 rupees to 28633.35 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 29139/quintal while low of Rs 28300/quintal. Now support for the pepper is seen at 28324 and below could see a test of 27892. Resistance is now likely to be seen at 29163, a move above could see prices testing 29570.

Trading Ideas:

Pepper trading range is 27892-29570.

Pepper prices ended firm as depleting stocks and lower supplies supported the sentiment.

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

NCDEX accredited warehouses pepper stocks dropped by 446 tonnes to 3570 tonnes.

Spot pepper dropped -46.65 rupees to 28633.35 rupees per 100 kg in Kochi market.