Pepper yesterday traded with the negative node and settled -0.91% down at 40740 due to weak overseas sales on higher prices, but thin supplies on the back of lower output restricted the downside. Exports have been poor because Indian-origin pepper is being offered at a premium compared to other suppliers. Fresh arrivals from the Indonesia and Malaysia might cap sharp gains in the short term. Industry officials estimate local pepper output in 2012 at about 43,000-45,000 tonnes, as against 49,000 tonnes last year. The weak export demand for Indian pepper is weak on higher prices for the Indian parity on the global market. During January up to the first half of June, Vietnam is estimated to have shipped pepper around 62,000 mt. Pepper imports by U. S. the largest consumer of the spice declined 14.8% in the first 2 months of the year (2012) to 8810 tn as compared to 10344 tn in the same period previous year. Imports of Pepper in the month of February declined by 16.8% to 3999 tn as compared to 4811 tn in the month of January 2012. Pepper arrivals in Kochi Mandi decreased to 110 quintals from 120 quintals, meanwhile offtakes slumped to 90 quintals from 140 quintals. Spot pepper dropped -173.35 rupees to 40216.65 rupees per 100 kg in Kochi market. In yesterday's trading session Pepper has touched the low of 40620 after opening at 41085, and finally settled at 40740. For today's session market is looking to take support at 40532, a break below could see a test of 40323 and where as resistance is now likely to be seen at 41037, a move above could see prices testing 41333.

Trading Ideas:

Pepper trading range for the day is 40330-41340.

Pepper fell due to weak overseas sales on higher prices, but thin supplies on the back of lower output restricted downside

Exports have been poor because Indian-origin pepper is being offered at a premium compared to other suppliers

NCDEX accredited warehouses pepper stocks gained by 3 tonnes to 1484 tonnes.

Spot pepper dropped -173.35 rupees to 40216.65 rupees per 100 kg in Kochi market.