Pepper gains on extended buying

The pepper futures witnessed huge rally in prices on continued buying on Saturday. From opening itself prices started trading higher on extended buying. Limited availability amid strong demand pushed the prices and active May contract touched new contract high and futures ended the day on positive note.
Outlook
Pepper May futures are projected to trade positive on follow through buying on Monday. Reports of strong demand from gulf buyers are likely to support the prices. However, prices are vulnerable to sharp corrections on profit booking on higher levels later in the day.
Prices quoted by India in international market moved down to $6200-6350 per ton which remained competitive. Vietnam 500 g/l is quoted around $5500 per mt against $5100-5200 per mt previous week.
As per trade sources, Tight availability at domestic spot market is likely to support the prices in near term. According to sources, Brazil crop is expected to be down this year with around 10% drop in Lampong crop.
According to derivative analysis, prices and volumes are rising while open interest is falling. Market has a lot of traders initiating from both sides but larger traders may be liquidating into the higher prices.
The market may be vulnerable to large price swings as shorter time frame traders attempt to trade from both sides of the market but liquidating before end of day.
Courtesy: Karvy Commtrade Ltd.

(Source: http://www.commodityonline.com/futures-trading/technical/Pepper-gains-on-extended-buying-23363.html)