India pepper erase gains lower prices in Indonesia

MUMBAI, June 6 (Reuters) - Indian pepper futures, up in early trade on tight supply position, pared gains and ended lower on talk of lower prices in Indonesia and Brazil, analysts said. "Prices have come down in Brazil and Indonesia as arrivals will start from next month," said Veeresh Hiremath, an analyst with Karvy Comtrade Ltd.

Brazil and Indonesia are two of the largest producers and fresh arrivals there in July could affect Indian exports.

India is the world's second largest producer and exporter.

However, fundamentals are still bullish as domestic arrivals are weak in the physical market.

Arrivals in the spot market were about 50 tonnes compared with about 70 tonnes last week, said Ajit Khona, a Kochi-based trader.

In India harvesting ended in March.

The July contract would get support at 14,150 rupees and face resistance at 14,700 rupees, Hiremath said.

Open interest for July contract fell to 10,173 tonnes from 10,585 tonnes the previous session.

Spot pepper rose 0.7 percent to 14,499 rupees per 100 kg. in spices hub of Kochi in Kerala.