The Hindu Business Line : Pepper futures down on lack of buying support

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Kochi March 7 The pepper futures market on Wednesday declined slightly for want of buying support both from the overseas and domestic markets.

The exporters and other buyers were silent.

In the international market all the other origins ruled steady. However, the buyers are keeping away anticipating that the prices would decline.

But, the farmers in Vietnam who have good returns from coffee and rubber crops are said to be not in a hurry to sell their pepper.

Vietnam has quoted 500 GL at $2,375 a tonne (f.o.b), while 550 GL at $2,525 a tonne (f.o.b). Vietnam Asta was offered at $2,780 a tonne (f.o.b).

Lampong Asta was offered at $2,900 a tonne (c&f). Indian parity is also at $2,900-$2,950 tonne (c&f) and thus there is not much difference in the Indian and prices of other origins.

The difference in the March prices of the same grade pepper (MG 1) on NCDEX and NMCE is sending out wrong signals to overseas buyers also, market observers pointed out adding that, "it is not a healthy sign".

Domestic demand is met directly from the primary markets evading tax, they said.

The March contract on NCDEX declined by Rs 68 a quintal on Wednesday to close at Rs11,890. The drop in other contracts was from Rs 28 to Rs 97 a quintal.

The March contract on NMCE fell by Rs 80 a quintal to close at Rs 11,172 from Rs 11,092 on Tuesday. The April and May contracts fell by Rs 30 and Rs 12 respectively while June, July and August moved up by Rs 61, Rs 49 and Rs 29 a quintal respectively.

The total turnover on NCDEX fell sharply by 14,748 tonnes to 17,806 tonnes while on NMCE it dropped by 845 tonnes to 2,189 tonnes.

The total open interest on NCDEX moved up by 52 tonnes to 29,408 tonnes. March position dropped by 452 tonnes to 8,239 tonnes while April and May positions also declined by 28 tonnes and 60 tonnes respectively.

On NMCE, the total open interest moved up by 61 tonnes to 5,308 tonnes. March position dropped by 167 tonnes to 2,944 tonnes.

The spot prices ruled steady on Wednesday at previous levels of Rs 11,200 (un-garbled) and Rs 11,800 (MG 1) a quintal.

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