The Hindu Business Line : Pepper futures continue to rise

May position increased by Rs 92 in NCDEX to Rs 6,910 on Thursday from Rs 6,818 a quintal on Wednesday. The rise in NMCE was Rs 187 to Rs 6,810 (Rs 6,623). The long positions witnessed substantial rise.

On the anticipation that Pakistan pepper market would open up for Indian product soon, north Indian buyers came forward buying futures at premium prices. There is said to be a move from the Indian side to get the import duty reduced by Pakistan for Indian pepper at least at par with that levied on Vietnam pepper. Currently, the duty is 32 per cent where as it is 5 per cent for Vietnamese product.

Badla has increased. As the futures have taken the upward curve the spot sellers started holding back.

Global market subdued

International market continued to be silent as the US buyers are busy with the ASTA Convention. The European buyers are also on a wait-and-watch attitude following the sudden rise in Indian prices.

Last trading price for other positions on NCDEX increased by Rs 145 to Rs 201 a quintal while it was from Rs 160 to 175 on NMCE on Thursday.

The total turnover on NCDEX on Thursday was down by 17 tonnes to 9,281 tonnes from 9,298 tonnes on Wednesday while it was up by 185 tonnes on NMCE to 1,353 tonne from 1,168 tonne.

Open interest

The open interest on NCDEX moved up by 735 tonnes to 21,544 tonnes from 20,809 tonnes on Wednesday. However, on NMCE it dropped by 297 tonnes to 3,370 tonnes from 3,667 tonnes.

Spot prices also continued to move up. It increased by Rs 100 a quintal to Rs 6,650 (un-garbled) and Rs 7,050 (MG 1) a quintal on Thursday.