Indian pepper futures, weak in early trade on sluggish export demand, erased losses on a tight supply situation in the spot market, analysts said.
"Farmers are not ready to sell their stocks due to a recent fall in prices," said Shardul Sharma, an analyst with Sharekhan Commodities Pvt Ltd. Some fresh buying at lower levels also boosted the sentiment, he said.
The benchmark August contract on the National Commodity and Derivatives Exchange fell about 3 percent in the last two trading sessions, exchange data showed.
Early weakness was due to sluggish export demand, said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd.
Exporters are not getting enough orders as buyers are expecting a fall in prices after crop arrivals from Brazil and Indonesia in July, he said.
Open interest for August contract rose to 7,005 tonnes from 6,767 tonnes the previous session.
Spot pepper fell 0.5 percent to 14,309 rupees per 100 kg in spices hub of Kochi in Kerala.
Source: Reuters
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