The Hindu Business Line : Buying support buoys pepper futures

The overseas buyers appear to be waiting for the new crop from Vietnam at low prices when the harvest begins there by mid-February/March, market observers here told Business Line.

Major investors here sold futures and bought 30 tonnes of spot pepper at Rs 92 a kg. In fact, whatever available is getting absorbed now as the stock available with the NCDEX is said to be around 3,000 tonnes as against the net outstanding position of 23,516 tonnes on Thursday.

Sri Lankan shipment

Meanwhile, a Sri Lankan consignment of pepper, which arrived at the Kochi port, has been detained by the authorities as the exports from the neighbouring island has crossed the 2,500 tonnes limit. Already, 4,000 tonnes of Sri Lankan pepper alleged to have landed in India crossing the above limit, the market sources said.

December contract on NCDEX increased by Rs 123 to close at Rs 9,765 a quintal on Thursday from Rs 9,642 on Wednesday. The increase in other positions was from Rs 131 to Rs 156 a quintal.

On NMCE, December contract went up by Rs 154 a quintal to close at Rs 9,400. The rise in other positions was from Rs 95 to Rs 226 a quintal.

The total turnover on NCDEX went up by 4,656 tonnes to close at 15,562 tonnes, while on NMCE, it moved up by 365 tonnes to 1,886 tonnes.

Open interest drops

The total open interest on NCDEX on Thursday dropped by 309 tonnes to 23,516 tonnes. December net open position dropped by 850 tonnes to 3,465 tonnes, while January and February have increased by 341 tonnes and 205 tonnes to 12,164 tonnes and 3,947 tonnes respectively. This showed that the bulls were liquidating December and switching over to January and February.

On NMCE the total net open position declined by 26 tonnes to 3,607 tonnes. The December position dropped by 42 tonnes to 406 tonnes, while January position increased by 7 tonnes to 975 tonnes. The March position, however, stood at 2,028 tonnes.

The spot prices on Thursday ruled steady at Rs 9,200 (un-garbed) and Rs 9,800 (MG 1) a quintal.

More Stories on : Spices & Condiments | Commodity Exchanges

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

Stories in this Section
NDDB, FAO launch South Asia pro-poor livestock policy plan

US court rules against bond requirements for shrimp imports

Rubber futures turn bullish

Glitches in tea e-auction to be overcome soon

Cardamom prices rule steady

Buying support buoys pepper futures

Gaining value

Karnataka farm policy aims at 4.5 pc annual growth

Guarseed futures gain on speculation

Ban only on fund-based portfolio management services: FMC