The Hindu Business Line : Pepper futures move up

Markets up
There were allegations that the market was manipulated.
All contracts at the major exchanges moved up.
In the international market there has been no selling pressure.

Kochi , Oct. 12

Pepper futures market shot up on Thursday without any changes in the fundamentals but by alleged manipulations of the market.

When some good business took place with American and European buyers the market fell sharply on Wednesday, while in the absence of any such development on Thursday it went up substantially, market observers said. Because of the margin problem of 15 per cent the small buyers were liquidating their long positions at low prices on Wednesday.

Contracts up

All contracts at the major exchanges moved up. October position on NCDEX increased to close at Rs 12,200 a quintal on Thursday from Rs 11,735 on Wednesday, while on NMCE it went up to close at Rs 12,000 on Thursday from Rs 11,476 on Wednesday.

The increase in all other positions on NCDEX on Thursday was from Rs 200 to Rs 532 a quintal. On NMCE it was from Rs 275 to Rs 512 a quintal. The total turn over went up to 45,164 tonnes from 30,454 tonnes while that of NMCE went up to 6,894 tonnes from 5,568 tonnes.

The total open interest on NCDEX stood at 26,775 tonnes as against 26,859 tonne on Wednesday while on NMCE it was at 5,461 tonnes compared to 5,573 tonnes. The outstanding position for October, November and December on NCDEX was 2,833 tonnes, 12,240 tonnes and 8,375 tonnes, respectively. On NMCE outstanding position for December was at 3,889 tonnes.

No pressure

In the international market there has been no selling pressure. The buyers are refraining from buying anticipating the prices would fall. Enquiries were floating from the US for first quarter of 2007, market sources here told Business Line.

Indonesia was said to be offering at $3,050 a tonne (C&F) while Brazil and Vietnam were not offering Asta grade. Some sellers in Brazil were offering B 1 at $2,700 a tonne (FOB). Similarly, FAO 500 GL was being offered by Vietnam at $2,700 a tonne (FOB). Spot prices improved by Rs 100 a quintal on Thursday to close at 11,600 (un-garbled) and Rs12,000 (MG 1). Sellers were reluctant to sell at this price.

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