The Hindu Business Line : Pepper rebounds on buying support

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Kochi Feb. 2 Pepper futures bounced back on buying support after falling by over Rs 500 a quintal on Thursday following the withdrawal of export subsidy by the Union Government. The pepper export subsidy is not available now, as the export target of 20,000 has been achieved.

However, it is understood that the Spices Board has recommended its extension for another 20,000 tonnes this year.

On NCDEX, the February contract was up by Rs 282 a quintal at Rs 12,618, while the increase in other positions was from Rs 259 to Rs 330 a quintal.

On NMCE, February contract shot up by 475 a quintal to Rs 12,450, while the rise in other contracts was from Rs 214 to Rs 391 a quintal.

The total turnover on NCDEX declined by 10,853 tonnes to 64,826 tonnes, while on NMCE, it fell by 1,769 tonnes to 11,451 tonnes.

Open interest down

The total open interest on NCDEX dropped by 1,179 tonnes to 24,657 tonnes. February position fell by 717 tonnes to 4,473 tonnes, while March also declined by 706 tonnes to 11,981 tonnes.

On NMCE, the total open interest moved up by 77 tonnes to 4,864 tonnes of which March position stood at 4,182 tonnes.

International Market

In the international market the buyers are on "wait and watch" approach anticipating that the Vietnamese crop would come soon and the prices might decline, market observers here told Business Line.

Lampong Asta was offered at $2,875 a tonne (c&f) while Vietnam Asta was at $2,800 a tonne.

Vietnam 500 GL unclean was quoted at $2,235 (fob) and 500 GL clean at $2,525 a tonne (fob). Indian (MG 1) parity was at $2,975 a tonne (c&f).

As the operators have become active, spot prices also went up by Rs 200 a quintal on Friday to Rs 11,800 (un-garbled) and Rs 12,400 (MG 1).