India pepper futures erase losses on short-covering

MUMBAI, May 12 (Reuters) - Indian pepper futures, down in early trade due to sluggish export demand and weak spot market, erased losses and ended higher on short covering, analysts said. "Fundamentals are still weak...but there was some short covering which pulled up the market," said Veeresh Hiremath, an analyst with Karvy Comtrade Ltd.

Export demand is still sluggish as prices in Vietnam are ruling lower than the domestic prices, he said.

Vietnam is the world's largest pepper producer and exporter, while India is the second largest.

Prices in Vietnam are expected to remain lower for a few more days due to higher arrivals in peak harvesting season, said Alimuhammed Lakdawala, an analyst with Anand Rathi Commodities.

Open interest for June contract fell marginally to 9,652 tonnes from 9,688 tonnes the previous session.

Spot pepper fell 0.7 percent to 14,058 rupees per 100 kg in spices hub of Kochi in Kerala.

Following are the closing prices of pepper futures in rupees per 100 kg on the National Commodity and Derivatives Exchange Ltd. <0#NPE:>:

Contract Reuters code Closing price Change in %

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