The Hindu Business Line : Positive trend seen for investing in pepper

March contract is available at below the spot prices, which off course "is not a healthy sign," market observers pointed out. Prices at other origins continued to rule firm. When Vietnam enters the market from next month prices might decline.

New Crop

However, their offer of Asta grade is limited. Everybody is waiting for the Vietnam new crop anticipating that the prices would fall. But, a selling pressure like what happened last year in Vietnam appears to be unlikely. There is good domestic demand as the grinding industry wants to cover before the onset of monsoon.

Hence, they are buying directly from the primary markets. As a result, the arrivals at the terminal markets during the week have been very thin.

Since the Indian output is estimated to be far below the domestic demand, the internal prices are likely to rule high.

Compared with last weekend close, the futures prices showed an increase on Saturday close by Rs 52 to Rs 174 a quintal.

Open Interest

The total turnover, however, witnessed a drop by 12,108 tonnes during the week. On NCDEX, on Saturday, March contract moved up by Rs 48 a quintal to close at Rs 11,961 from Rs 11,913 on Friday.

The increase in other contracts was from Rs 15 to Rs 47 a quintal. On NMCE April contract dropped by Rs 44 a quintal to close at Rs 11,800 from Rs 11,844 on Friday.

The other contracts increased by Rs 3 to Rs 278 a quintal at Saturday close.

The total turnover on Saturday on NCDEX fell by 14,826 tonnes to 9,022 tonnes, while on NMCE it declined by 1,792 tonnes to 724 tonnes.

The total open interest on NCDEX moved up by 201 tonnes to 30,006 tonnes.

March position dropped by 260 tonnes to 2,650 tonnes, whereas April and May increased by 336 tonnes and 117 tonnes respectively to 13,279 tonnes and 8,044 tonnes.

On NMCE total open interest declined by 33 tonnes to 3,365 tonnes. April, May and June positions were at 330 tonnes, 1,847 tonnes and 1,046 tonnes respectively. The spot prices ruled steady at Rs 11,200 (un-garbled) and Rs 11,800 (MG 1) a quintal at Saturday close.