Pepper gains on firm demand

The pepper futures traded on positive note but overall trade was very choppy on Wednesday.
From opening itself prices traded higher. However, later on prices took decent correction on news of fresh arrivals at spot market and lower quotes offered by Vietnam.
Nonetheless, Overall buying interest supported the prices and futures closed at positive note.
Outlook

The pepper futures are expected to trade slightly lower initially on Thursday. Extended profit booking may pull down the prices.
As per trader sources, there ware some rumors in market regarding Vietnam pepper crop which is pressurizing the prices. However, overall good domestic demand amid tight supply situation is likely to support the prices during the day.
Prices quoted by India in international market remained out priced at $5,250-5350 per ton
Arrivals of around 60-64 bags were reports at spot market of Kochi (Each bag= 75Kg)
Reports of crop damage due to floods and heavy rains in Sri Lanka and Indonesia may support the prices
Withdrawal of strike at Kochi Port might also act as a supporting factor for prices
However, lower quotes offered by Vietnam for their new crop might weigh on prices in near term
Indonesia pepper production in 2011 is expected to decline to 37,000 tons against 56,000 tons due to unfavorable weather conditions
According to derivative analysis, prices and open interest are rising while volumes are declining. This indicates market is attracting late buyers & early shorts; market is vulnerable to a sharp correction but likely that that correction will be bought creating a buy point for uptrend.

(Source: http://www.commodityonline.com/futures-trading/technical/Pepper-gains-on-firm-demand-21824.html)