MUMBAI, Jan 6 (Reuters) - India pepper futures reversed losses to end up on short-covering on Wednesday after prices fell over 3 percent so far this week, analysts said.
"The firmness is because of some short-covering in the evening session. Fundamentals of the spice are weak because export demand has still not picked up and going forward this month arrivals will pick up," said an analyst with a Delhi-based brokerage.
Pepper exports have remained sluggish throughout the year mainly due to premium Indian prices. Exports declined by 29 percent to 1,500 tonnes in November.
India's pepper output in 2010 is expected around last year's levels, but prices are unlikely to fall sharply in coming months due to low carry-over stocks, a Reuters poll of eight traders, exporters and analysts showed.
Total NCDEX warehouse stocks as on Jan. 1 stood at 5,459 tonnes.
Spot pepper fell more than 188 rupees to end at 14,027.5 rupees per 100 kg in Kochi, a major trading hub in Kerala.
Following are the closing prices of pepper futures in rupees per 100 kg on the National Commodity and Derivatives Exchange Ltd.
Source : REUTERS