Pepper gains on short covering


The pepper futures traded higher on active buying on lower levels on Tuesday. Futures started the day on positive note on short covering.
Limited arrivals at spot market and fresh buying at lower levels further fueled the prices and prices witnessed huge rally till the closing of the session.

The pepper futures are expected to extend the positive trend on active buying on Tuesday. However, prices might take small corrections on profit booking but these corrections are likely to create further buying in market.
Prices quoted by India in international market were $5450-5550 per ton while Vietnam ASTA is at $5300- 5350 per ton, Lampong ASTA is at $5475-5575 per ton and Brazil ASTA is quoted at $5000-51000 per ton
Limited arrivals are reporting at spot market of Kochi which might support the prices
As per trade sources, arrivals are not picking up from both India and Vietnam which is creating confusion among the investors
Lower quotes offered by Vietnam might weigh on prices in coming days
According to derivative analysis, over a period of time prices and open interest are rising while volumes are falling. Market is attracting late buyers & early shorts; market is vulnerable to a sharp correction but likely that that correction will be bought creating a buy point for uptrend.



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