Pepper June delivery dropped Rs 201 and settled at Rs 30177/quintal on profit booking at the weekend though the tight supply situation in spot market checked the downfall. Supplies have been weak in the spot market because of almost stagnant production since last three-four years. Farmers have held back their produce on hopes of better prices. A restricted supply position is likely to keep pepper prices firm. Domestic pepper production this year is expected to be down because of unseasonal rain during October-December that affected the yield of pepper vines. Pepper arrivals in Kochi Mandi increased to 340 quintals as on 13th May 2011 from 230 quintals, meanwhile offtakes also jumped to 310 quintals from 200 quintals. Spot pepper dropped -255.2 rupees to 29373.35 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 30383/quintal while low of Rs 29711/quintal. Now support for the pepper is seen at 29798 and below could see a test of 29418. Resistance is now likely to be seen at 30470, a move above could see prices testing 30762.

Trading Ideas:

Pepper trading range is 29418-30762.

Pepper dropped on profit booking though the tight supply situation in spot market checked the downfall

Pepper looks to test support at 29798 and resistance is seen at 30470.

NCDEX accredited warehouses pepper stocks rose by 5 tonnes to 3216 tonnes.

Spot pepper dropped -255.2 rupees to 29373.35 rupees per 100 kg in Kochi market.