The Hindu Business Line : Uncertainty brings down pepper futures

Kochi June 11 The pepper futures market declined on continued uncertainty over the quantity restriction on nearby position that is likely to come into force from July 16.

Given the competitive position of Indian pepper in the world market, a positive decision on this issue is urgently needed, market sources here told Business Line. Those covered earlier are liquidating, fearing they would not be able to hold more than 100 tonnes after July 16.

This is said to have been compelling genuine players to get out of the market, they said. "Intra-day trade is controlling the market, which is the bread and butter of the exchanges and the brokers," they alleged. As the nearby delivery started declining, exporters were buying from exchanges and processing and shipping out, they said.

Meanwhile, some reports said that Vietnam was further easier to $3,290-$3,300 a tonne (f.o.b.) for 500 GL. However, others claimed that clean pepper was being offered at $4,000 a tonne (f.o.b.). Selling of spot was very limited.

Futures decline

June contract on NCDEX moved up by Rs 49 on Monday to close at Rs 14,049 from Rs 14,000 on Saturday last. The fall in other contracts was from Rs 74 to Rs 196 a quintal.

On NMCE, June contract fell by Rs 241 a quintal to close at Rs 13,200 from Rs 13,441. July, August and September dropped by Rs 167, Rs 181 and Rs 46 a quintal respectively while October and November moved up by Rs 20 and Rs 100 respectively.

The total turnover on NCDEX shot up by 10,829 tonnes to 24,295 tonnes while on NMCE it increased by 1,203 tonnes to 2,442 tonnes.

The total open interest on NCDEX dropped by 1,077 tonnes to 25,163 tonnes. June position fell by 1,535 tonnes to 6,140 tonnes while July declined by 60 tonnes to 11,378 tonnes. August increased by 608 tonnes to 5,485 tonnes.

On NMCE open interest moved up by 294 tonnes. June position dropped by 205 tonnes to 2,279 tonnes.

Spot prices ruled steady at Saturday's level of Rs 13,600 (un-garbled) and Rs 14,200 (MG 1) a quintal.