Pepper drops on active selling

The pepper futures traded down on active selling on gains on Monday. Futures started the day on slightly positive note on extended short covering.
However, strong selling interest taking cues from lower prices in international market and poor export demand pulled down the prices and futures ended on negative note.
Outlook
The pepper futures are expected to open on lower note on extended short selling on Tuesday.
However, later on prices might take good recovery on short covering on losses. Nonetheless, prevailing bearish sentiments in the market due to poor export demand might pull down the prices towards closing.
Prices quoted by India in international market were $5225-5325 per ton which remained inline with other origin.
As per data released by Spices board, pepper exports during April- January 2010-11 stood around 15,700 tons down by 7% compared to same period last year.
Exporters are staying away from market as there is now significant clue regarding actual crop size of Vietnamese pepper. Lower quotes offered by Vietnam are pressurizing the prices amid weak export demand.
However, limited arrivals are reporting at spot market of Kochi which is limiting the losses. According to derivative analysis, prices and open interest are falling while volumes have shown a positive move.
This indicates that market is running out of traders willing to open or hold an open short/sell. Traders are liquidating both loosing long positions & closing winning short positions. It is a signal of aggressive short selling.

(Source: http://www.commodityonline.com/futures-trading/technical/Pepper-drops-on-active-selling-22241.html)