Pepper gains on extended buying

The pepper futures continued the upside movement on fresh buying n Thursday. Futures started the day on positive note on extended buying.
However, prices reversed the trend on profit booking at higher levels but these corrections created further buying towards the closing and futures ended the day on higher note.
Outlook

The pepper April futures are expected to extend the up trend on active buying interest on Friday. Fresh buying in far month contracts ahead of expiry might support the prices. However, prices might take decent corrections during closing hours on poor export demand.
Prices quoted by India in international market moved up to $5275-5300 per ton; as prices in domestic market is rising prices at export front are also moving inline with that.
As per trade sources, traders are buying futures for taking delivery from exchange which is supporting the prices.
Kerala sales tax department has tighten the transport of pepper to other states thus arrivals are remaining limited at spot market.
Limited availability at spot market might support the prices at lower levels.
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.
According to derivative analysis, prices, volumes and open interest all are rising. Market is attracting larger numbers of traders willing to open positions from the long side and hold them. Traders are more confident that prices will continue to climb in favor of a working long.

(Source: http://www.commodityonline.com/futures-trading/technical/Pepper-gains-on-extended-buying-22493.html)