The Hindu Business Line : Bearish activities push down pepper futures

Kochi March 14 Pepper futures declined on Wednesday on bearish activities and reports of $25 drop in Vietnamese prices. Reports that the Centre was unlikely to extend export subsidy for pepper also had an impact on the prices.

Add to this March contract on NMCE is nearing maturity. It was much easier. Investors were buying against their sales.

Meanwhile, some of the processors were taking delivery from one exchange and dumping in another exchange.

Consequently, the stock position in the exchange is building up, market observers told Business Line.

On NCDEX, March contract dropped by Rs 123 a quintal to Rs 11,656 on Wednesday.

The decline in other positions was from Rs 22 to Rs 90 a quintal except September, which was up by Re 1 a quintal.

March contract on NMCE moved up by Rs 36 a quintal to Rs 11,200. The fall in other contracts was from Rs 131 to Rs 177 a quintal.

Turnover drops

The total turnover on NCDEX on Wednesday dropped by 5,701 tonnes to 17,221 tonnes, while on NMCE it fell by 744 tonnes to 1,898 tonnes.

The total open interest on NCDEX declined by 227 tonnes to 29,190 tonnes. The March position fell by 920 tonnes to 4,728 tonnes, while April moved up by 201 tonnes to 12,140 tonnes.

On NMCE, the total open interest went up by 78 tonnes to 3,588 tonnes. March position declined by 178 tonnes to 173 tonnes. May and June position increased to 1,889 tonnes and 1,018 tonnes.

Spot prices in tandem with the futures market trend declined by Rs 100 a quintal to close at Rs 11,100 (un-garbled) and Rs 11,700 (MG 1) on Wednesday.

In the international market Indian prices are competitive and almost on par with most of the other origins. Vietnam was offering 500 GL at $2,325 a tonne (f.o.b) and Asta grade at $2,700 a tonne (f.o.b).

Indonesia was quoting L Asta at $2,950 a tonne (c&f) while Brazil was offering B Asta at $2,525-$2,600 a tonne (fob). Indian parity is at $2,825 a tonne (c&f) for Europe and $2,875 a tonne (c&f) for the US.

However, the buyers continued to wait and watch anticipating a decline in the prices.

Domestic demand continued to be good. But it is met directly from the primary markets.

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