Pepper tumbles on profit booking


The pepper futures traded lower on Monday on profit booking at higher levels. Prices showed some recovery on short covering but active selling interest pulled down the prices.
Spot market also witnessed a steady trend on mixed fundamentals weighing on overall sentiments.
The pepper futures are expected trade lower on Tuesday. Roll over of positions and fresh selling in far month contracts may pressurize the prices.
As per trade sources, domestic demand is not picking up due to prevailing cold wave conditions are hampering the north Indian market activity. Buyers in international market are also waiting for the peak arrivals to start.
However, short covering at lower levels can not be over ruled. Average daily prices at spot market of Kochi for Ungarbled and MG-1 grade were quoted steady around `21,500 and `22,300 per quintal respectively. As per traders, arrival of 5-10 tons was noticed at spot market.
As per derivative analysis, prices and volumes are falling while open interest is increasing; indicating aggressive short selling in market. However, a recovery is expected creating sell point for further down trend.



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