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G. K. Nair

Kochi May 27 Pepper futures market witnessed a sharp fall due to bearish activities by cartels last week.

The prices fell by Rs 1,133 to Rs 1,513 a quintal.

Quantitative restrictions on positions coupled with intra-day trade with wild fluctuations were pointed out as the reasons for the sharp decline.

Turnover on NCDEX increased 48,711 tonnes to 2,18,555 tonnes, while on NMCE it was up 3,191 tonnes to 19,819 tonnes.

Open interest on NCDEX during the week dropped 942 tonnes to 25,478 tonnes, while on NMCE it moved up by 115 tonnes to 3,314 tonnes.

Spot prices also fell in tandem with the futures market trend by Rs 400 a quintal during the week to Rs 13,800 (un-garbled) and Rs 14,400 (MG 1) on Saturday.

However, on Saturday the futures market moved up, while spot prices ruled steady at previous level. International prices by and large ruled firm and the Indian parity continued to remain competitive.

Supply position

Tight supply position seems to prevail. Hence, there is possibility of orders coming to India, market observers told Business Line.

As long as Indian prices are competitive in the international market there is potential to invest in the commodity.

Add to this, there is a short supply position in the domestic market, which turn might keep the internal prices at higher levels.

IPC REPORT

According to International Pepper Community (IPC) report (May 21-25) for the week the overall market was quiet with local prices at most markets registering a slump ranging from one to two per cent and f.o.b prices registering almost flat levels.

At Kochi, local price was down by 1 per cent to close at $3,414 a tonne. f.o.b price, however, gained slightly at 0.5 per cent to close at $3,678 a tonne. At Kuching, local price was down by 2 per cent to close at $3,107 a tonne, while f.o.b price remained unchanged at $4,200 a tonne. Meanwhile, spot price of Sarawak Black Special at Rotterdam/Hamburg was unchanged at $4,100 a tonne.

WHITE PEPPER

Local price at Kucing was down by 3 per cent over the week to close at $4,320 a tonne while FOB price remained unchanged at $5,200 a tonne. At Hainan, local price dropped by 3 per cent to close at $4,740 a tonne while f.o.b price dropped by similar margin to close at $4,806 a tonne. Meanwhile, spot price of Muntok White FAQ at Rotterdam/Hamburg was unchanged at $5,000 a tonne.

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