Pepper June delivery dropped Rs 1220 and settled at Rs 29282/quintal as a special margin on long positions kicks in this week and due to weak exports. According to International Pepper community (IPC) exports of black pepper from Indonesia during January to April 2011 stood at 10,821 Mt (7025), increase of 54% as compared to previous year. Exports of Black pepper from Vietnam during January to March 2011 stood at 25,000 MT, decline of
10% as compared to previous year.

According to General Statistics Office of Vietnam, the country has exported around 42,000 tonnes of Pepper during January to April 2011. Arrivals of pepper in the domestic mandi stood at 30 Mt as compared to 25 Mt while offtakes reduced to 15 Mt from 30 Mt. Spot pepper dropped -517.1 rupees to 28956.25 rupees per 100 kg in Kochi market.

The contract touched the intra day high of Rs 30649/quintal while low of Rs 29282/quintal. Now support for the pepper is seen at 28826 and below could see a test of 28371. Resistance is now likely to be seen at 30193, a move above could see prices testing 31105.

Trading Ideas:

Pepper trading range is 28371-31105.

Pepper dropped as a special margin on long positions kicks in this week and due to weak exports

Pepper looks to test support at 28826 and resistance is seen at 30193.

NCDEX accredited warehouses pepper stocks gained by 20 tonnes to 3558 tonnes.

Spot pepper dropped -517.1 rupees to 28956.25 rupees per 100 kg in Kochi market.