Pepper May delivery dropped Rs 171 and settled at Rs 26140/quintal on global cues though tight domestic supply situation limited the downfall. There were reports about pepper prices in Vietnam have declined sharply and this has impacted sentiment here also. Supplies have been poor in the spot market because of almost stagnant production in the last two-three years. Unseasonal rain in October-December affected the yield of pepper vines and is likely to slash output this year. Spot pepper gained 12.5 rupees to 25500 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 26575/quintal while low of Rs 25910/quintal. Now support for the pepper is seen at 25842 and below could see a test of 25543. Resistance is now likely to be seen at 26507, a move above could see prices testing 26873.

Trading Ideas:

Pepper trading range is 25583-26913.

Pepper dropped on global cues though tight domestic supply situation limited the downfall.

Pepper looks to test support at 25842 and resistance is seen at 26507.

NCDEX accredited warehouses pepper stocks rose by 167 tonnes to 3258 tonnes.

Spot pepper gained 12.5 rupees to 25500 rupees per 100 kg in Kochi market.