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

The pepper futures market after a continuous fall for the past few days took a u-turn on Friday on good buying support. Liquidation by bulls has stopped as bearish activities failed.

The November contract on the NCDEX shot up by Rs 854 a quintal to close at Rs 10,790. Similarly, all other positions increased substantially by Rs 867-944.

On the NMCE, November went up by Rs 869 to close at Rs 10,526The increase in other positions was Rs 137-927.

Turnover up

The total turnover on the NCDEX increased by 2,655 tonnes to 36,271 tonnes (33,616 tonnes), while on the NMCE it dropped by 1,099 tonnes to 5,699 tonnes (6,798 tonnes).

Open interest falls

The total open interest on the NCDEX fell by 665 tonnes to 23,664 tonnes (24,329 tonnes).

On the NMCE it moved up by 143 tonnes to 5,129 tonnes (4,986 tonnes).

The outstanding position for November on the NCDEX dropped by 625 tonnes on Friday to 6,495 tonnes from 7,120 tonnes on Thursday.

The December position also declined by 57 tonnes to close at 12,433 tonnes (12,490 tonnes).

On the NMCE, outstanding position for December was up by 86 tonnes at 4,047 tonnes (3,961 tonnes).

Indonesian exporters have covered from India for meeting their export commitments to the US at $2,575 a tonne (c&f) "fully guaranteed" and this has pushed up the market, market sources told Business Line.

They said Indonesian exporters bought from India because it was the world's cheapest price in the recent past.

In fact, Indonesia was offering ML (Malabar, Lampong) at $2,900 a tonne (f.o.b.).

Brazil was quoting $2,700 a tonne (f.o.b.), while Vietnam was selling 500 Gl at $2,550-2,600 a tonne (f.o.b.), they said.

Thus, India was not having any competitor at all, of late.

As the spot sellers were not forthcoming, the exporters have covered all their sales from the exchanges, as pepper was available only there and at discounted price.

However, they expressed apprehension about the quality of the produce in the warehouses.

Spot prices also moved up by Rs 200 a quintal in tandem with the increase in the futures market to close at Rs 10,100 (un-garbled) and Rs 10,700 on Friday.

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