The Hindu Business Line : Pepper prices likely to rule firm till March

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Kochi Feb. 4 Pepper prices are likely to rule high at the current levels till March and thereafter, depending upon the supplies from Vietnam, it might move either up or down. Therefore, the situation is volatile.

As the Indian production is estimated to be below the domestic demand, the domestic price is expected to rule high.

However, the imports from Sri Lanka and Vietnam would have an impact on the local prices later.

The international prices will, however, depend on the supplies from Vietnam where the harvesting has been delayed.

If the El Nino effect turns out to be a reality as has been predicted then the output in Brazil and Vietnam is likely to be less this year.

The arrivals at the Indian terminal market have been virtually nil and whatever quantity arrives is picked up by domestic dealers directly from the primary markets.

Those who postponed buying earlier anticipating the prices would fall are buying now. The prices in the futures market on Saturday declined marginally on bearish operations. However, some have moved up.

On NCDEX, February contract declined by Rs 50 a quintal on Saturday to close at Rs 12,585. The drop in other contracts was from Rs 8 to Rs 82 a quintal.

On NMCE, February contract ruled steady at Rs 12,450, while March position declined by Rs 12 to close at Rs 12,700. Other contracts moved up by Rs 21 to Rs 250 a kg.

The total turnover on NCDEX fell by 33,233 tonnes to 31,593 tonnes, while on NMCE, it dropped by 5,256 tonnes to 6,195 tonnes.

The total open interest on NCDEX improved by 391 tonnes to 25,048 tonnes, while February position declined by 62 tonnes to 4,411 tonnes.

Open interest for March went up by 473 tonnes to 12,454 tonnes.

On NMCE, the total open interest moved up by 76 tonnes to 4,940 tonnes while that of March stood at 4,284 tonnes.

The spot prices ruled steady on buying support and short supply at Rs 11,800 (un-garbled) and Rs 12,400 (MG 1).

During the week all the future contracts on NCDEX increased by Rs 236 to Rs 364 a quintal from the prices on January 27 last.

On NMCE, the increase in prices from the last weekend close was from Rs 460 to Rs 595 a quintal.

The spot prices also moved up by Rs 300 a quintal during the week.

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