The Hindu Business Line : Sharp fall in pepper futures' turnover

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Kochi Feb 11 The sharp fall in turnover in the pepper futures market last week indicates lack of interest in the small and medium players.

During the week, the NCDEX turnover dropped by 1,86,750 tonnes to 1,34,924, while on NMCE, it fell by 34,549 tonnes to 22,121 tonnes.

On Saturday, NCDEX turnover fell by 9,318 tonnes to 9,293 tonnes on Friday, while on NMCE, it dropped by 1,203 tonne, to 1,842 tonnes.

The exporters are on sidelines waiting for a fall in February contracts, which are nearing maturity, anticipating that the bulls may liquidate, market observers told Business Line.

The domestic demand has also slowed down while there is no international support as the Indian pepper is out-priced following the withdrawal of export subsidy cushion.

The futures market on Saturday witnessed a decline in all the contracts.

There continued to be difference of Rs4-5 a kg in the prices of the same grade of pepper between the two exchanges.

On NCDEX, February contract declined by Rs 67 to close at Rs 12,480. The drop in other contracts was from Rs 23 to Rs 76 a quintal.

On NMCE, Feb contract dropped by Rs 199 a quintal to close at Rs 12,051 from Rs 12,250 on Friday. The decline in other contracts was from Rs 20 to Rs 85 a quintal

The spot prices dropped by Rs 100 a quintal on slow buying support to Rs 11,800 (un-garbled) and Rs 12,400 (MG 1).

IPC Weekly report

The market for black pepper in India was slower compared to last week. Activity at the Commodity Exchange came down, but prices still remained relatively firm. In Kochi, spot price of un-garbled black pepper was Rs 119 a kg and $2,933 a tonne f.o.b for MG1 recorded at the week's close.

In Vietnam, the market continued to be active with many orders being placed. Prices at Ho Chi MInh City were 36,000 VND a kg for local purchases, $2,290 a tonne f.o.b for black 500 g/l and $2,360 a tonne for black 550g/l.

In Sarawak, the market showed an improvement with average prices moving up by 4 per cent locally and 5 per cent f.o.b.

During the week, local prices at Kuching increased from RM 8.13 per kg to RM 8.31 at the week's close. In Lampung, the market was unchanged and prices were reported stable at IDR 20,000 a kg locally and $2,670 f.o.b ASTA for March shipment.

The white pepper market in Bangka was relatively active, with f.o.b price increasing by 2 per cent from $3,570 last week to $3,650.

However, average local price eased slightly from IDR 30,300 a kg last week to IDR 30,000 this week.

At Kuching, local price increased from RM.10.94 a kg to RM.11.16 at the week's close.

The week average showed an increase of 4 per cent compared to last week.

At Hainan, China, prices increased by 2 per cent for local and f.o.b.

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