The Hindu Business Line : Pepper futures pare gains

On Monday, the pepper futures market opened firm and traded higher and declined at close on reports that the Kerala Government procurement agency, Marketfed, which is holding an estimated 2,400 tonnes of black pepper, would be liquidating its stock.

As the report spread, the prices dropped even in the North Indian markets, observers told Business Line.

In fact, Marketfed has called for tenders for selling 244 tonnes of un-garbled black pepper at a price not less than Rs 9,900 a quintal excluding Kerala VAT.

Reports that Vietnam prices were firmer because of some border trade had pushed up the price during the course of trading. Besides, there was buying activity by Mumbai-based stock and commodity investors who have bought about 120 tonnes for delivery on NCDEX exchange, it is said.

As the rupee strengthened on Monday, the current Indian parity ruled at $2,350 a tonne (c&f).

The August contract on Monday dropped by Rs 411 a quintal on NCDEX to 10,137 tonnes from 10,548 tonnes last Saturday. On NMCE, the decline was by Rs 382 a quintal to Rs 9,905 from Rs 10,287.

The drop in other positions was from Rs 377 to Rs 429 a quintal while at NMCE it was from Rs 410 to Rs 530 a quintal.

Turnover up

The total turnover on NCDEX increased by 11,822 tonnes to 37,288 tonnes. On NMCE, it went up by 2,690 tonnes to 6,398 tonnes.

The total open interest on NCDEX stood at 24,090 tonnes against 24,301 tonnes, while on NMCE, it was 4,431 tonnes compared to 4,246 tonnes.

The outstanding position for August, September and October on NCDEX was 5,356 tonnes, 6,642 tonnes and 8,443 tonnes respectively.

There was not much domestic demand. In tandem with the futures market, trend spot prices also dropped by Rs 100 a quintal on Monday to Rs 9,800 (un-garbled) and Rs 10,200 (MG 1).