The Hindu Business Line : Pepper: Domestic demand to pick up

Pepper futures market shot up on Saturday hitting the ceiling after crashing on Friday on artificial buying support. This kind of wild fluctuation might keep the overseas buyers away. Besides, the domestic demand is also likely to pick from the third week of September as the north Indian dealers are understood to have exhausted their stocks. But, the current trend of pushing up steeply and then pulling down sharply by bull cartels is working against the interest of the market.

Genuine buyers and sellers are, in fact, afraid of the wild fluctuations the market is subjected to, they pointed out. A favourable rupee against dollar also made the Indian parity competitive at $ 2,850 - $ 2,900 a tonne (c&f).

Indonesia was offering L Asta at $ 2,850. Brazil was quoting B Asta at $ 2,450 - 2,550 (f.o.b) while B1 at $ 2,450 (f.o.b) and some trading reported to have taken place at this level. Vietnam was offering at $ 2,450 (f.o.b) FAQ 500 GL. It is against this background the futures prices shot up on Saturday. A favourable rupee against dollar also made the Indian parity competitive at $ 2,850 - $ 2,900 a tonne (c&f). Indonesia was offering L Asta at $ 2,850. Brazil was quoting B Asta at $ 2,450 - 2,550 (f.o.b) while B1 at $ 2,450 (f.o.b) and some trading reported to have taken place at this level.

Vietnam was offering at $ 2,450 (f.o.b) FAQ 500 GL. It is against this background the futures prices shot up on Saturday.

All the future contracts on the major exchanges increased substantially.

On NCDEX, the increase was from Rs 811 to Rs 1,004, while on NMCE it was from Rs 822 to Rs 1,178 a quintal.

September contract on NCDEX shot up by Rs 823 on Saturday to close at Rs 12,911 from Rs 12,088 on Friday while on NMCE it went up by Rs 979 a quintal to close at Rs 12,800 from Rs 11,821.

The total turnover on NCDEX on Saturday dropped by 28,514 tonne to 43,394 tonne from 71,908 tonne on Friday. On NMCE, it fell by 2,580 tonne to 6,096 tonne from 8,676 tonne. On NCDEX, 32,708 tonne was traded for October on Saturday while the open interest stood at 14,768 tonne down by 892 tonne from Friday's 15,660 tonne.

The total open interest on NCDEX was at 24,761 tonne against 25,567 tonne, while on NMCE it was at 5,167 tonne compared to 5,192 tonne on Friday.

The outstanding position for October on NMCE on Saturday was at 3,586 tonne against 3,599 tonne on Friday.

The buying interest has pushed up the spot prices by Rs 300 on Saturday to close at Rs 11,500 (un-garbled) and Rs 11,900 (MG 1) a quintal. However, it was Rs 200 a quintal less than that of Thursday's close.

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