The Hindu Business Line : Pepper futures decline

October contracts dropped by Rs 186 on NCDEX to Rs 12,378 a quintal, while the fall in other positions in the exchange was from Rs 149 to Rs 251 a quintal. On NMCE, November position declined by Rs 166 to close at Rs 12,145 a quintal. The drop in other positions was from Rs 11 to Rs 235 a quintal.

Turnover slips

Total turnover on NCDEX on Tuesday slipped by 1,961 tonnes to close at 25,689 tonnes, while on NMCE, it was up by 792 tonnes to 4,100 tonnes.

The total open interest on NCDEX declined by 692 tonnes to 26,365 tonnes, while on NMCE it slid by 29 tonnes to 4,712 tonnes.

The outstanding position on NCDEX for November dropped by 727 tonnes to 11,611 while December moved up by 603 tonnes to 10,154. On NMCE, outstanding position for December stood at 4,029 tonnes down by 29 tonnes.

Spot prices also fell in tandem with the decline in futures market by Rs 200 a quintal to close on Tuesday at Rs 11,500 (un-garbled) and Rs 12,100 (MG 1).

Oct volatile

October delivery, which matured on Tuesday on NCDEX, has been highly volatile and is influencing other deliveries, market observers told Business Line. Some of the speculative bulls holding long positions were liquidating October and many of them had gone into November. The market seems to be looking for some direction now and it is likely to stabilise from Wednesday, they predicted.

In the international market, US buyers are holding back anticipating that the prices would fall. According unconfirmed reports, Indian exporters have offered at $2,975 a tonnes (C&F) but the buyers were looking for lower price.

However, according to the observers, there are buyers for good quality pepper but there are not enough sellers. Some of the buyers in the world market, in fact, wanted to cover, they added.

Brazil was offering B Asta at $2,650 a tonne (f.o.b.) while B1 at $2,500 a tonne (f.o.b.). Ecuador reported to have sold into Eastern Europe at $2,450 a tonne.

According to overseas market sources, Vietnam was offering V Asta at $3,150 (c&f), while Indonesia was quoting L Asta at $3,200 a tonne. Indian parity was at $3,000-3,125 a tonne (c&f).

White pepper prices are also on a downward trend. Brazil was offering it at $3,900 while Indonesia at $4,125-4,150 a tonne.

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