The Hindu Business Line : Pepper futures move up on buying support

Broking and commodity investors have bought some quantity of MG1 NCDEX delivered. August delivery was up by Rs 167 a quintal on NCDEX to close at Rs 10,180 on Wednesday from Rs 10,013 on Tuesday. On NMCE, it increased by Rs 200 to Rs 10,100 from Rs 9,900 a quintal.

The increase in other positions on NCDEX was from Rs 129 to Rs 178 a quintal, while on NMCE it was from Rs 94 to Rs 189 a quintal.

The total turnover on NCDEX dropped by 8,241 tonnes to 18,419 tonnes from 26,660 tonnes on Tuesday. On NMCE, it fell by 732 tonnes to 3,394 tonnes from 4,126 tonnes.

Open interest

The total open interest on NCDEX on Wednesday stood at 25,001 tonnes as against 24,058 tonnes, while on NMCE it was at 4,260 tonnes compared to 4,434 tonnes.

The outstanding position for August, September and October on NCDEX was 5,141 tonnes, 7,094 tonnes and 8,996 tonnes respectively.

Global market

In the international market, the Indian parity was at $2,375 a tonne (c&f). The prices at other origins except Brazil continued to rule high. Resellers were offering MLSV at $2,375 a tonne c&f US. Lampong Asta has gone up to $2,450 (c&f), where as B Asta (Brazil) was being sold at $1,800 f.o.b., B1 at $1,725 and B2 $1,675 a tonne (f.o.b). Brazil was selling October/November/December to Europe, US and everywhere, market observers here told Business Line.

US brokers were quoted as saying that not much selling pressure was coming from other origins. In fact, they are holding umbrella for Brazil, they pointed out.

Volatility

They attributed the fluctuations in recent days in the futures market partially to the apprehensions of the participants on the dramatic variance in NCDEX stock positions.

On July 7, it was 9,122 tonnes, which declined to 8,551 tonnes on July 28. Thereafter on August 4, the stock position fell sharply to 1,979 tonnes.

However, when it was pointed out, the position was shown as 6,796 tonnes. It had sent out wrong signals to the market, they alleged.

There was no sellers in spot and at the same time domestic demand was also absent.

However, some inferior quantity was picked up by the grinding industry at cheaper levels.

Spot prices ruled steady at previous levels of Rs 9,600 (un-garbled) and Rs 10,000 (MG 1) a quintal.

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