MUMBAI (Commodity Online): Pepper futures extended its previous losses on short covering due to weak demand from overseas market amid higher supply Thursday.

NCDEX pepper August contract tumbled Rs 194 or 0.93 percent to the session low of Rs 20653 per 100 kg. The counter is now trading higher at Rs 20711, down Rs 136 or 0.66 percent from the last close and the open interest added 1.03 percent to 11,267 tonnes, indicating short selling. Volume traded as of now stood at 2,980 tonnes.

Now support for the pepper is seen at 20411 and below could see a test of 20002. Resistance is now likely to be seen at 21384, a move above could see prices testing 21948.

Pepper August delivery dropped Rs 506 and settled at Rs 20820/quintal on profit taking amid weakness in other spices. Fundamentals are still favorable for further uptrend on strong demand amid tight availability of pepper.

Vietnam, the world's largest producer and exporter of the spice, is expected to produce 100,000 tonnes of black Pepper in 2010, down 5 percent on year. Spot pepper gained 56 rupees to end at 20,856 rupees per 100 kg in Kochi, a major trading hub in Kerala.

The contract touched the intraday high of Rs 21539/quintal while low of Rs 20566/quintal.

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