Commodity Trading Tips for Pepper by KediaCommodity

PepperPepper December contract gained Rs 540 and settled at Rs 38150/quintal as traders chose to cover their short positions after prices fell heavily in the previous session, while thin spot supplies also supported. Estimates of higher output and the approaching arrival season is weighing on sentiment. Higher pepper production is expected after rains picked up in Karnataka and Kerala, the top two producers. As per the latest release from the International Pepper Community, imports of pepper into Germany decreased by 13% to 25,200 mt in 2011, from 29,000 mt in 2010. Out of these figures around 5% and 7% respectively in 2010 and 2011 were ground pepper.  During January - July 2012, Germany has imported 15,500 mt, a marginal increase of 3% from import in the same period last year. Share of import of ground pepper in the first seven months was 9%.According to the latest updates from India Pepper and Spice Trade Association (IPSTA), Kochi, Pepper arrivals decreased to 40 quintals from 50 quintals and offtakes slumped to 30 quintals from 40 quintals. Spot pepper dropped -213.4 rupees to 38544.45 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 38230/quintal while low of Rs 37685/quintal. Now support for the pepper is seen at 37813 and below could see a test of 37477. Resistance is now likely to be seen at 38358, a move above could see prices testing 38567.

Trading Ideas:

Pepper trading range for the day is 37477-38567.

Pepper rose as traders chose to cover their short positions after prices fell heavily in the previous session

Imports of pepper into Germany decreased by 13% to 25,200 mt in 2011, from 29,000 mt in 2010.

Pepper arrivals decreased to 40 quintals from 50 quintals and offtakes slumped to 30 quintals from 40 quintals

Spot pepper dropped -213.4 rupees to 38544.45 rupees per 100 kg in Kochi market.