Pepper Witnessed Weak In Near Term

Chennai: Pepper futures are seeing long liquidation and a sluggish demand in the overseas and domestic markets could see the spice ruling weak in the near-term. The open interest position for August contracts indicates long liquidation, while volumes also indicated lower participation. Pepper was seeing consolidation in the Rs 14,600-14,900 a quintal range and Rs 14,635-14,600 was crucial on the downside and Rs 14,900-15,000 on the upside. The formation of alliance by Vietnam, Brazil and Indonesia could also witness speculators enter the market, while lower stocks in other producing countries was forcing purchasers into India. Share Khan put the support for pepper at Rs 14,200 and resistance at Rs 14,800, while indicating a downtrend for now. Kotak Commodities viewed the current trend as long liquidation for August contracts and accumulation of short positions for September and October contracts.