Pepper September delivery dropped Rs 123 and settled at Rs 33370/quintal on profit booking though lower supplies in the domestic market while depleting stocks and lower availability with other major producers limited the downside. There are anticipations of a further rise in export and domestic demand, and lower stocks and lower global production reports. But traders do anticipate some moderate fall in rates from these higher levels for the demand to pick up substantially again. Exports and domestic demand from North India remained good. Demand from North India too has been regularly there ahead of the Festive season. Traders expect that good demand and a firm trend in Vietnam could support the rates further. Good demand from Gulf countries sup-porting the rates. Demand from China and West Asia also reported. IPC has predicted 2011 crop to be lower by 2% at 309,952 MT. Carryforward stocks are expected to decline marginally to 94,582 MT vs 95,442 MT. Global exports have declined by 11% to 237,650 MT. Indian production expected to decline to 48,000 MT. Spot pepper dropped -80.3 rupees to 32164.7 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 33425/quintal while low of Rs 32831/quintal. Now support for the pepper is seen at 32992 and below could see a test of 32615. Resistance is now likely to be seen at 33586, a move above could see prices testing 33803.

Trading Ideas:

Pepper trading range is 32615-33803.

Pepper settled weak on profit booking though lower supplies in the domestic market limited the downside

Demand from North India too has been regularly there ahead of the Festive season.

NCDEX accredited warehouses pepper stocks gained by 76 tonnes to 4230 tonnes.

Spot pepper dropped -80.3 rupees to 32164.7 rupees per 100 kg in Kochi market.