The Hindu Business Line : Pepper futures decline

November contract on NCDEX dropped by Rs 105 a quintal to close at Rs 10,310. While all other positions except March, which moved up by Rs 29 a quintal, fell by Rs 88 to Rs 132 a quintal.

On NMCE, there was a sharp fall. November contracts fell by Rs 307 to close at Rs 9,933 a quintal.

The decline in other positions was from Rs 248 to Rs 689 a quintal.

The total turnover on NCDEX dropped by 4,195 tonnes to 29,679 tonnes from 33,874 tonnes while that on NMCE declined by 278 tonnes to 5,880 tonnes from 6,168 tonnes.

Open interest up

The total open interest on NCDEX moved up by 605 tonnes to 24,663 tonnes.

The outstanding position for November and December stood at 5,967 tonnes and 13,490 tonnes respectively.

The open interest on NMCE stood at 5,068 tonnes as against 5,103 tonnes on Saturday last.

The outstanding position for December was at 3,973 tonnes.

As the Indian parity remains far below the prices of other origins there has been good business.

All the processing capacity of exporters have been fully utilised for November while for December it has been used up to 50 to 75 per cent.

Physical tight

Ready physical material supply continued to be tight. However, cheaper coverage is available from the national exchanges, market sources said.

Indian parity at present is $2,600 a tonne (c&f), while Lampong Asta is quoted at $2,950-3,000 a tonne (f.o.b). Vietnam is offering 500 GL at $2,400-2,450 a tonne.

Brazil is quoting B Asta grade at $2,650 a tonne.

In the international market, buyers are interested to buy Indian pepper, prices of which have dropped below that of other origins for the first time after eight years, market observers told Business Line.

Therefore, good business could take place at the prevailing rates in the coming days, they added.

Spot prices also declined by Rs 100 a quintal in tandem with the futures market trend and closed at Rs 10,000 (un-garbled) and Rs 10,600 (MG 1) on Monday.

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