The Hindu Business Line : Bears pull down pepper futures

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Kochi Feb 22 Pepper futures declined on bearish activities following uncertainty over delivery of goods for want of space in the warehouses of the exchanges.

While the NCDEX, which has a net open position of 15,005 tonnes for March on Thursday, has a stock of only 4,602 tonnes as on February 21. It is understood that NCDEX warehouses do not have space for those who have sold during the past week to deliver the goods. Similarly, the NMCE, which has a net open position of 4,221 tonnes for March, is holding a stock of 7,194 tonnes as on February 20.

On NCDEX, March contract fell by Rs 295 a quintal to close at Rs 12,541 on Thursday from Rs 12,836 on Wednesday. On NMCE, March contract dropped by Rs 363 a quintal to close at Rs 12,020 from Rs 12,383. The fall in other contracts was from Rs 161 to Rs 325 a quintal. The total turnover on NCDEX moved up by 512 tonnes to 2,406 tonnes while that on NMCE went up by 1,231 tonnes to 4,643 tonnes.

The total open interest on NCDEX increased by 218 tonnes to 29,977 tonnes while that of March declined by 164 tonnes to 15,005 tonnes. The April position moved up by 260 tonnes to 8,425 tonnes.

In tandem with the trend in the futures market, the spot prices also dropped by Rs 200 a quintal to close at Rs 11,600 (un-garbled) and Rs 12,200 (MG 1) on Thursday.

According to an IPC report on Thursday the world black pepper market had shown a mixed trend last week. Prices in India eased, while those in other producing countries increased. At Kochi, trading at the Commodity Exchange remained active, particularly for March and April contract. Prices however declined marginally by 1-3 per cent compared to the previous week. It was reported that local prices in Lampung moved up on average by IDR 1,000 a kg with limited activity from IDR 20,000 the week before. In Sarawak, local prices continued to move up, but FOB price was stable. Prices at pepper-growing areas in Sri Lanka reportedly increased by 2 per cent. There is no figure on prices reported from Ho Chi Minh City, but price for raw material at Daklak was stable at VND 32,000 a tonne.

Similarly, the market for white pepper was also mixed. In Bangka, local prices eased by 2 per cent, while in Sarawak, the price increased by 2 per cent.

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