The Hindu Business Line : Pepper declines as bulls, bears fight it out

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Kochi Feb. 14 The pepper futures market declined on Wednesday allegedly because of the tug of war between the bulls and bears. The market improved and moved up during the day but declined at close, market observers told Business Line.

There is good domestic demand and the exporters were also active as NMCE February delivery was available at below spot prices, they said. What is taking place in the pepper futures market now is "online gambling and as a result the very purpose of the futures market price discovery and risk management are defeated", they alleged.

Global market steady

The international market continued to remain steady without any activity as everybody is waiting for Vietnam to re-open after the holidays. All the origins continued to rule firm because of the tight supply position in the world market.

As the prices are ruling high, the north Indian dealers have started preferring lower grades which they are buying directly from the primary markets in northern and southern Kerala and transported evading tax, they said.

February contract on NCDEX declined by Rs 15 a quintal to close at Rs 12,350 from Rs 12,365 on Tuesday. The decline in other contracts except August was from Rs 44 to Rs 102 a quintal. August contract increased by Rs 119 a quintal to close at Rs 13,735.

On NMCE, February contract fell by Rs 330 a quintal to close at Rs 11,615 from Rs 11,945 on Tuesday. The drop in other contracts was from Rs 35 to Rs 102 a quintal.

The total turnover on NCDEX increased by 4,805 tonnes to 27,113 tonnes, while on NMCE it went up by 1,007 tonnes to 5,500 tonnes.

The total open interest on NCDEX moved up by 533 tonnes to 28,325 tonnes. February position dropped by 550 tonnes to 1,710 tonnes, while March increased by 1,118 tonnes to 16,546 tonnes.

On NMCE, the total open interest moved up by 98 tonnes to 4,900 tonnes of which the March position was at 4,141 tonnes.

The spot prices ruled steady at Rs 11,700 (un-garbled) and Rs 12,300 (MG 1) a quintal on Wednesday.