The Hindu Business Line : Brazil sales push pepper futures down

Reports of sales by Brazil at lower prices have pushed down the pepper futures market on Wednesday after shooting up on Tuesday on highly speculative activities.

Another factor that contributed to the fall was the selling pressure in the spot as the sellers wanted to liquidate their stocks before Saturday when the Banks close for 4 days.

Market in action

All the futures contracts declined. The October position on NCDEX, which went up by Rs 751 on Tuesday, was down by Rs 467 on Wednesday to close at Rs13,625 a quintal.

On NMCE, it dropped by Rs 564 a quintal to close at Rs 13,305. The decline in other positions on NCDEX was from Rs 400 to Rs 551 a quintal, while on NMCE it was from Rs 375 to Rs 572 a quintal.

Turnover drops

The total turnover on NCDEX dropped by 30,745 tonnes to 48,390 tonnes. On NMCE, it fell by 5,931 tonnes to 7,944 tonnes.

The total open interest on NCDEX stood at 27,925 tonnes compared with 27,796 tonnes on Tuesday.

On NMCE, it was at 5,444 tonnes as against 5,390 tonnes.

Outstanding Position

The outstanding position for October, November and December on NCDEX was 7,540 tonnes, 13,140 tonnes and 4,192 tonnes respectively, while on NMCE, October and December positions were at 2,334 tonnes and 2,519 tonnes respectively.

Brazil was offering October B Asta at $2,600 (f.o.b) while B1 at $2,450 - $2,500 and B2 at $2,400 a tonne (f.o.b). However, Lampong Asta was being offered at $3,450 a tonne (c&f) while Vietnam Black was being quoted at $3,450 a tonne (c&f).

Spot Prices

India would have also taken this route but for the high wages and lack of facilities, they said.

The selling pressure in spot has pushed down the prices by Rs 200 a quintal to close at Rs 12,300 (un-garbled) and Rs 12,700 (MG 1) on Wednesday.

More Stories on : Spices & Condiments

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Inflation and deteriorating terms of trade for agriculture

Aqua Technology Park to be set up in Kochi

Sheet rubber edges higher

Orthodox leaf prices higher at Coimbatore auctions

Packet tea market set to witness price war

Improving returns

Tea buyers concerned at adulteration

Hind Copper to increase mining capacity

Gujarat groundnut output pegged at 16 lakh tonnes

Brazil sales push pepper futures down

US-based equity fund to invest $10m in Eastern Condiments

Replanting to reduce cardamom output

Lockout in 6 Kanan Devan divisions