Pepper yesterday traded with the positive node and settled 4% up at 20355 as good demand in spot amid poor supplies and lower stocks prompted buying and are likely to continue this rally for next couple of sessions.

Some support had been seen from the spot market also where spot pepper jumped 571 rupees to end at 19,988 rupees per 100 kg on Improvement in spot demand ahead of the festive season which was supporting the prices on the supply side availability is very poor both in the domestic and overseas market. Vietnam, the world's largest producer and exporter of the spice is expected to produce 1lakh a tonne of black pepper in 2010, down 5% on year, Vietnam’s export target for the year 2010 has been reduced by 27% to 1lakh tonnes against 136,500 tonnes last year. India's pepper exports fell 5% to 4,650 tonnes in April-June 2010 from the same period a year ago. For today's session market is looking to take support at 19850, a break below could see a test of 19345 and whereas resistance is now likely to be seen at 20607, a move above could see prices testing 20859.

Trading Ideas:

Pepper trading range is 19082-20596.

Pepper Jumped as good demand in spot amid poor supplies and lower stocks prompted

Vietnam largest producer & exporter is expected to produce 1lakh a tonne of pepper in 2010

In spot pepper prices gained 571 rupees to end at 19,988 rupees per 100 kg

BUY PEPPER SEPT @ 20000-20100 SL 19880 TGT 20220-20380-20520.NCDEX

Improvement in spot demand ahead of the festive season which was supporting the prices