Pepper weakens on sluggish exports

The pepper  futures washed out all the gains and traded down on Saturday. Futures started the day on positive note on extended short covering.
However, prices failed to sustain the gains and fell drastically on selling at higher levels.
Higher arrivals at spot market and poor export demand pulled down the prices and futures ended the day in red.
Outlook
The pepper futures are expected to slightly lower on active selling on Monday. Continued selling pressure on good arrivals may pressurize the prices.
However, prices might witness good recovery on short covering during the day. Average daily prices at spot market of Kochi were down to `21,400 for ungarbled and `22,200 for MG-1.
As per trade sources, exporters are not activity buying in market as they are waiting for Vietnam crop to hit the market which may cool down the prices here also. According to data released by Spices  Board, pepper export during April- December was around 14,000 tons down by 9% compared to 15,425 tons during same period last year.
Prices quoted by India in international market are $5,125-5150 per ton. According to derivative analysis, prices, volumes and open interest all are falling.
If the total open interest is falling off and prices are declining, the price decline is being caused by disgruntled long position holders being forced to liquidate their positions.
Bearish trend may continue till a sudden reversal happens in open interest or volumes traded.
Courtesy: Karvy Commtrade Ltd.

(Source: http://www.commodityonline.com/futures-trading/technical/Pepper-weakens-on-sluggish-exports-21584.html)