The Hindu Business Line : Pepper futures rebound on buying support

The tight supply position in the world market seems to have compelled those who needed Malabar (MG1) to shift towards India. There are buyers to pay $2,750 a tonne (c&f).

Vietnam was offering at $2,650 a tonne (c&f) but given that some of the multinationals had taken 500 tonnes of MG1 to Vietnam in December, it is evident that no material is available there, market observers here told Business Line.

Besides, enquiries from Europe are also starting to pour in but for a slightly lower price.

Arrivals at the terminal market have totally dried up, they said. Exporters having commitments are covering directly from the primary market.

Domestic demand, which has gone up, is also met directly from the primary market.

January contract on NCDEX shot up by Rs 331 a quintal on Friday to Rs 11,469. The increase in other positions was from Rs 47 (July) to Rs 154 a quintal.

On NMCE, February contract went up by Rs 70 a quintal to close at Rs 11,370 from Rs 11,300.

The rise in other positions was from Rs 75 to Rs 193 a quintal.

Turnover

The total turnover on NCDEX increased by 9,730 tonnes to 19,875 tonnes, while on NMCE, it moved up by 1,151 tonnes to 2,879 tonnes.

The total open interest on NCDEX moved up by 437 tonnes to 24,057 tonnes. Net open position for January was down by 881 tonnes to 697 tonnes on Friday. February position, however, increased by 847 tonnes to 10,558 tonnes.

Total open interest on NMCE declined by 39 tonnes to 3,968 tonnes. February position was at 81 tonnes, while that of March was at 3,623 tonnes.

Spot prices also moved up by Rs 100 a quintal on buying support to Rs 10,700 (un-garbled) and Rs 11,300 (MG1) on Friday.