The Hindu Business Line : Bears pull down pepper futures

Market observers attributed the fall to bearish activities. Surprisingly some of the bears have turned bulls now, they said. Meanwhile, agents of Indian buyers are reportedly in Vietnam to buy cheap pepper and this is also pointed out as a reason for the fall in the prices.

Vietnam prices

Vietnam prices continued to rule steady at higher levels. Steep rise in white pepper prices would have its impact on black prices as Vietnam might convert more black in to white, they predicted.

According to reports from overseas, tight supply position world over might push up pepper prices in Vietnam in the coming days. Vietnam was reportedly offering 500GL at $3,300-3,350 a tonne (f.o.b).

Brazil was offering B2 at $3,200 and B1 at $3,400 a tonne (f.o.b.) while B Asta at $3,550 a tonne (f.o.b).

On NCDEX, May contract fell by Rs 379 a quintal on Wednesday to Rs 15,740 . The fall in other contracts was from Rs 332 to Rs 426 a quintal.

On NMCE, May contract dropped by Rs 472 a quintal to Rs 14,985. The fall in other contracts was from Rs 210 to Rs 550 a quintal.

Turnover dips

The total turnover on NCDEX fell by 10,141 tonnes to 45,526 tonnes, while on NMCE it dropped by 1,169 tonnes to 4,390 tonnes.

The total open interest on NCDEX declined by 146 tonnes to 30,046 tonnes. May position fell by 1,034 tonnes to 11,759 tonnes, while June moved up by 583 tonnes to 12,685 tonnes.

On NMCE, the total open interest moved up by 8 tonnes to 4,050 tonnes. May position declined by 61 tonnes to 2,174 tonnes.

Domestic demand is now met by supplies from Kodagu region where the commodity is offered at Rs 2-3 below the prices in Kerala.

Spot prices

Spot prices in tandem with the futures trend dropped by Rs 200 a quintal to close at Rs 14,500 (un-garbled) and Rs 15,100 (MG 1) on Wednesday.