The Hindu Business Line : Pepper falls on reports of selling pressure in Vietnam

Kochi April 17 Pepper futures witnessed a sharp fall on Tuesday following reports of selling pressure building up in Vietnam and consequent drop in prices.

Added to this, the NCDEX decision not to grant any exemption on margin also contributed to the fall as many operators were liquidating. However, NMCE would reportedly grant exemption to eligible parties.

Vietnam is said to have quoted FAQ 500 GL at $3,050 a tonne (f.o.b) while 550 GL was at $3,200 and V ASTA at $3,600 a tonne (f.o.b).

Following the development in Vietnam, Brazil and Indonesia markets activated in a bid to sell before Vietnam and reduced their prices. Brazil G2 500 GL was being offered at $3,100 a tonne (f.o.b) and G1 560 GL at $3,200 and B Asta at $3,300 a tonne (f.o.b). Lampong Asta was being offered a $3,575 a tonne (f.o.b).

Strong Indian rupee against dollar has kept the Indian parity high at $3,900 - $3,950 a tonne (c&f).

On Tuesday, April contract on NCDEX fell by Rs 705 a quintal to Rs 14,790. The drop in other contracts was from Rs 265 to Rs 623 a quintal.

On NMCE, April contract dropped by Rs 731 a quintal to Rs 14,567. The fall in other contracts was from Rs 144 to Rs 638 a quintal.

Turnover rises

The total turnover increased by 16,381 tonnes on Tuesday to 55,702 tonnes on NCDEX, while on NMCE it declined by 948 tonnes to 6,826 tonnes.

The total open interest on NCDEX went up by 1,707 tonnes to 35,558 tonnes. April position was down by 188 tonnes to 1,076 tonnes. May and June increased by 1,540 tonnes and 269 tonnes respectively to 19,132 tonnes and 10,395 tonnes.

On NMCE, total open interest moved up by 26 tonnes to 4,333 tonnes. May position was at 2,787 tonnes and June 1,211 tonnes.

Domestic buying slowed down following high fluctuations in the market.

Spot prices in tandem with the futures market trend fell by Rs 300 a quintal to close on Tuesday at Rs 14,200 (un-garbled) and Rs 14,800 (MG 1).