The Hindu Business Line : Pepper futures drop on market uncertainty

Kochi June 12 Pepper futures market witnessed a fall on Tuesday on continued uncertainty over the quantity restriction on nearby position even as the maturity of the June contract was drawing near.

Many were liquidating, as they won't be able to hold more than 100 tonnes of black pepper from July 16, market sources told Business Line.

Indian parity for MG 1 has dropped by $50 a tonne to $3,750 a tonne (c&f).

Whereas in the international market almost all the origins, except Brazil, which was lower by $50 a tonne (f.o.b.), were overall steady.

As the futures market keeps on falling, overseas buyers have taken a wait-and-watch approach. The current trend is sending out wrong signals, they said.

FUTURES DECLINE

June contract declined on NCDEX by Rs 201 a quintal on Tuesday to Rs 13,821. The drop in other contracts was from Rs 119 to Rs 293 a quintal. On NMCE, June contract moved up by Rs 4 a quintal to Rs 13,250. All other contracts fell by Rs 96-308 a quintal.

Spot prices in tandem with the futures market trend fell by Rs 100 a quintal to close at Rs 13,500 (un-garbled) and Rs 14,100 (MG 1) on Tuesday.

Turnover dips

Total turnover on NCDEX fell by 6,706 tonnes to 17,589 tonnes, while on NMCE, it dropped by 1,286 tonnes to 1,156 tonnes.

Total open interest on NCDEX declined by 191 tonnes to 24,972 tonnes, while June position fell by 720 tonnes to 5,420 tonnes and July by 185 tonnes to 11,378 tonnes. August, however, moved up by 598 tonnes to 6,083 tonnes.

On NMCE, total open interest increased by 254 tonnes to 4,354 tonnes. June position also improved by 130 tonnes to 2,409 tonnes.

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