Pepper October contract gained Rs 590 and settled at Rs 43190/quintal on short covering due to limited stocks in the local markets. Lower demand for Indian Pepper in the international markets due to huge price parity could pressurize the prices. According to Spices Board of India, exports of pepper in April 2012 fell by 47% and stood at 1,200 tonnes as compared to 2,266 tonnes in April 2011. Indian Pepper Prices are not sustaining at higher levels due to the weak export demand for Indian parity due to its higher prices in the global markets. New crop from Indonesia is likely to reach in the market from mid September and crop size is expected to normal during the year. However, rains in growing states of Kerala and Karnataka have been pressurizing the market sentiments over last few weeks. Overseas buyers have been placing orders with other origins such as Indonesia and Brazil to take the benefit of lower prices. Exports have been poor because Indian-origin pepper is offered at a premium in the global market compared with competitors. However, the counter is likely to get some technical support at lower side in the coming days. Spot pepper gained 183.85 rupees to 41225 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 43270/quintal while low of Rs 42505/quintal. Now support for the pepper is seen at 42707 and below could see a test of 42223. Resistance is now likely to be seen at 43472, a move above could see prices testing 43753.

Trading Ideas:

Pepper trading range for the day is 42223-43753.

Pepper ended with gains on short covering due to limited stocks in the local markets.

Lower demand for Indian Pepper in the international markets due to huge price parity could pressurize the prices

NCDEX accredited warehouses pepper stocks dropped by 50 tonnes to 3268 tonnes.

Spot pepper gained 183.85 rupees to 41225 rupees per 100 kg in Kochi market.