The Hindu Business Line : Exporters looking out for pepper

There was no selling pressure. Contrary to expectations in the market, the Kerala state procurement agency, Marketfed, did not sell the pepper held by it on May 5th as announced earlier.

Buying interest was seen though at lower price. Indications are that exporters are looking for material, as they seem to have not got enough quantity from the primary markets.

Price parity

"We are at competitive price and some buying is taking place from selected pockets in the world market," market sources told Business Line. Though Vietnam was offering ASTA grade at $1,575 a tonne those buyers who look for quality may turn towards India. The difference between Indian and Vietnam prices is less than $100 a tonne as the Indian parity is currently at $1,625 a tonne.

In the international market, activities might slow down as the ASTA convention is scheduled for next week. This might have a negative impact on the demand and price.

May delivery

Meanwhile, large quantity for May is held by the NCDEX exchange. The buyers express fear that the quality and quantity parameters are not good. Their apprehension is based on the fact that May delivery is being quoted at discounted levels and yet no buyer is said to be taking the delivery. The maturity for May delivery will be on 15th and 20th.

LAST TRADING PRICE

The last trading price (LTP) of May position at NCDEX on Saturday was up by Rs 59 a quintal raising it to Rs 6,549 from Rs 6,490 a quintal on Friday while it had gone up by Rs 150 a quintal at NMCE from Rs 6,290 to Rs 6,440.

The difference in other positions at NCDEX was from Rs 52 to Rs 73 a quintal whereas at NMCE it was from Rs 31 to Rs 127 a quintal.

Turnover at NCDEX fell by 148 tonne to 1,793 tonne from 1,941 tonne on Friday while at NMCE it dropped by 73 tonne to 529 tonne from 602 tonne yesterday.

OPEN INTEREST

The open interest at NCDEX on Saturday was 19,125 tonne as against 18,964 tonne on Friday. At NMCE it dropped by 96 tonne on Saturday to 3,926 tonne from 4,022 tonne.

Domestic market is steady with no selling pressure from the primary markets in Kerala. However, pepper from Karnataka is being sold at Rs 69 anywhere in India.

According to IPC report, the market was mixed during the week (May 01 - 05). It is reported that the market in Vietnam remained active and prices at HCMC were same as last week. At Daklak however, the local price improved slightly from VND 17,100 per kg to VND 17,200.

At Kochi, the market was quiet and the average price of un-garbled black declined by 3 per cent from Rs 6,665 a quintal last week to Rs 6,470 this week. At Lampung, average local prices were reported to have improved significantly by 8 per cent, as stocks continued to decline and new crop expectations were lowered. In Sarawak prices were up by 1 per cent, though activity was limited.

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