Pepper June delivery dropped Rs 13 and settled at Rs 30002/quintal due to higher arrivals in the domestic markets amid weak local and export demand. The demand in the spot market at present is low while the production is good putting pressure on the prices. According to Spices Board of India exports of pepper from India during April 2010- February 2011 stood at 16,600 tonnes as compared to 18,425 tonnes in 2009-10, decline of 10%.According to General Statistics Office of Vietnam, the country has exported around 42,000 tonnes of Pepper during January to April 2011. Spot pepper gained 20 rupees to 29333.35 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 30285/quintal while low of Rs 29730/quintal. Now support for the pepper is seen at 29726 and below could see a test of 29451. Resistance is now likely to be seen at 30281, a move above could see prices testing 30561.

Trading Ideas:

Pepper trading range is 29451-30561.

Pepper dropped due to higher arrivals in the domestic markets amid weak local and export demand

Pepper looks to test support at 29726 and resistance is seen at 30281.

NCDEX accredited warehouses pepper stocks rose by 138 tonnes to 3436 tonnes.

Spot pepper gained 20 rupees to 29333.35 rupees per 100 kg in Kochi market.