The Hindu Business Line : Mixed trend in pepper futures

Kochi May 29 Pepper futures market on Tuesday showed a marginal increase on nearby positions while distant positions declined, as there was buying interest for the former. Currently, Indian produce remained at an advantageous position being competitive.

There is "possibility of good business and it is good time to grab the international market" given the low prices here, market observers told Business Line.

However, the restrictions on near month position are affecting the market badly pushing the futures prices down. June is available below the spot prices and it is a blessing in disguise for the exporters who are buying from the exchange and selling, they said.

Vietnam is still holding back Asta grade, which it is quoting at $4,000 a tonne (fob). Indonesia and Brazil are also said to be offering Asta grade at $3,900 a tonne (fob). Where as, the Indian parity is at $3,850-$3,900 a tonne (c&f).

If the restrictions on near month position were not withdrawn the pepper market "will be in a big mess after June 16", they pointed out.

Instead of controlling the intra-day trade, which is responsible for the high volatility in the market, the exchanges have imposed restrictions on positions, they alleged.

MIXED TREND

June contract on NCDEX moved up on Tuesday to close at Rs 13,661 from Rs 13,633 on Monday. The July, August and September contracts improved by Rs 26, Rs 22 and Rs 4 a quintal while October and November dropped by Rs 49 and Rs 180 a quintal.

On NMCE, June improved to close at Rs 13,267 from Rs 13,263. July and October increased by Rs 46 and Rs 98 a quintal while August and November dropped by Rs 217 and Rs 19 a quintal. September remained unchanged.

The total turn over on NCDEX increased by 190 tonnes to 25,825 tonnes while on NMCE it declined by 7 tonnes to 2,383 tonnes.

Spot prices ruled steady at previous levels of Rs 13,600 (un-garbled) and Rs 14,200 (MG 1) a quintal on Tuesday.

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