Pepper March delivery dropped Rs 114 and settled at Rs 22420/quintal pressured by the increased arrivals of the new crop from Vietnam. Traders expect some more corrections in near term before demand rise however the market sentiments remain weak as the exports were adversely affected. As per the latest release from the Spices Board of India, during April-January 2010-11, a total quantity of 15,700 tonnes of pepper valued Rs.307.47 crores have been exported as against 16,925 tonnes valued Rs.269.36 crores of last year. Spot pepper dropped -55.55 rupees to 22611.75 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 22620/quintal while low of Rs 22185/quintal. Now support for the pepper is seen at 22197 and below could see a test of 21973. Resistance is now likely to be seen at 22632, a move above could see prices testing 22843.

Trading Ideas:

Pepper trading range is 21973-22843.

Pepper dropped pressured by the increased arrivals of the new crop from Vietnam

Pepper looks to test support at 22280 and resistance is seen at 22600.

NCDEX accredited warehouses pepper stocks rose by 19 tonnes to 2801 tonnes.

Spot pepper dropped -55.55 rupees to 22611.75 rupees per 100 kg in Kochi market.