Pepper October contract gained Rs 100 and settled at Rs 42700/quintal due to firm cues from spot on thin supplies and lower stocks but weak overseas sales as higher prices weighed on sentiment. Production estimates are lower because of lesser rains but weakness in overseas demand is weighing on sentiment. Exports have been poor because Indian-origin pepper is offered at a premium of $800-$1,200 per tonne in the global market compared with competitors. Overseas buyers have been placing orders with pepper producers such as Indonesia and Brazil due to lower prices in those countries. Exports have been poor because Indian-origin pepper is offered at a premium of $800-$1,200 per tonne in the global market compared to competitors. The cues shaping up global markets indicate that some more moderation could be seen in the market as Indonesian harvest is about to get completed and the local pepper is already being quoted pretty high in global markets. The other origins are offering the commodity at a much cheaper rate than Indian variety. Exports have been poor because Indian-origin pepper is offered at a premium of $800-$1,200 per tonne in the global market compared with competitors. Spot pepper dropped -4.25 rupees to 40823.5 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 42790/quintal while low of Rs 42390/quintal. Now support for the pepper is seen at 42463 and below could see a test of 42227. Resistance is now likely to be seen at 42863, a move above could see prices testing 43027.

Trading Ideas:

Pepper trading range for the day is 42227-43027.

Pepper ended with gains due to firm cues from spot on thin supplies and lower stocks

Production estimates are lower because of lesser rains but weakness in overseas demand is weighing on sentiment

Exports have been poor because Indian-origin pepper is offered at a premium of $800-$1,200 per tonne

Spot pepper dropped -4.25 rupees to 40823.5 rupees per 100 kg in Kochi market.