Pepper Ends Down Nearly Rs. 500 As Profit Taking Continues .

Indian pepper futures dipped further in the afternoon trading session on long liquidations. Prices dipped on long liquidation at higher levels, despite the strong fundamentals. Weak export demand is adding selling pressure in Indian pepper futures at every rise in the prices.

According to Spices Board of India exports of pepper from India during April 2010- March 2011 stood at 18,850 tonnes as compared to 19,750 tonnes in 2009-10, decline of 5%.

The NCDEX Pepper futures August contract surged just above Rs. 3,00,00 level last day from the low of Rs. 26,970 during the first week of July. However, the contract witnessed heavy selling pressure above Rs. 300,00 per 100 kg level.

In today's trading session, the August pepper moved in the range of Rs. 29788-28900 and the contract at the end season trading at Rs. 29185 per 100 kg, down by Rs. 493 or 1.66% over the last close. The open interest dipped 3.63% to 10443 tonnes, indicating profit taking.

According to the International Pepper Community, world pepper output this year will fall by about 6,500 tonnes against 2010 to 310,000 tonnes due to unfavorable weather conditions and pests in several producing countries.

Source : indiainfoline.com