Pepper November contract gains Rs 65 and settled at Rs 42850/quintal due to thin supplies and depleting stocks, though weak exports weighed on sentiments. Traders expect pepper output to remain almost the same or slightly higher in 2012/13 than last year as revived rains later in the season helped the growth of pepper vines. Movement is range-bound in futures because of subdued exports and absence of any fresh cues but thin supplies are supporting prices. In Kerala and Karnataka, the leading pepper producing states, the crop is harvested from December to February. Export demand continued to weak for our pepper as Indian pepper is out priced in the international market. Vietnam has exported nearly 93,000 tonnes of pepper valued 636 million USD during the first nine months of 2012. Indonesia has harvested with yields higher than expected. Market sources said, all eyes are looking at Indonesia and Brazil. India's total production of pepper during the year 2012 was estimated at 43,000 tonnes against 48,000 tonnes in 2011. India's crop dipped due to old vines, static acreage, low replanting and high labor cost. Besides, unfavorable weather conditions in 2011-12 affected the production. Spot pepper dropped -203.1 rupees to 42029.4 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 43000/quintal while low of Rs 42450/quintal. Now support for the pepper is seen at 42533 and below could see a test of 42217. Resistance is now likely to be seen at 43083, a move above could see prices testing 43317.

PEPPER

Pepper trading range for the day is 42217-43317.

Pepper edged up due to thin supplies and depleting stocks, though weak exports weighed on sentiments.

Sources expect pepper output to remain almost the same or slightly higher in 2012/13 than last year

NCDEX accredited warehouses pepper stocks gained by 252 tonnes to 4860 tonnes.

Spot pepper dropped -203.1 rupees to 42029.4 rupees per 100 kg in Kochi market.

SELL PEPPER NOV @ 43000 SL 43280 TGT 42780-42580.NCDEX