The Hindu Business Line : Pepper futures dip as June delivery ends

Kochi June 15 Pepper futures market after moving up on Thursday fell on Friday as the June delivery got over, and traders reduced their positions due to the quantity restrictions on nearby positions.

The restrictions have put the exporters in difficulty, as they cannot cover large quantity, despite having contracts and at a time when the futures are cheaper than the spot prices.

Indian parity at present is highly competitive and yet some exporters said to have sold at $3,700-$3,750 a tonne (c&f) when there were buyers at $3,825 a tonne (c&f), market sources alleged.

In the international scenario, the pepper prices in all the origins remained unchanged except India. Brazil was offering B Asta June/July at $3,750 - 3,900 a tonne (f.o.b.), while B 1 at $3,650-$3,700 a tonne (f.o.b).

FUTURES plunge

June contract on NCDEX on Friday dropped by Rs 223 a quintal to close at Rs 13,295. The fall in other contracts except November and December fell by Rs 129 to Rs 251 a quintal. November and December improved by Rs 25 and Rs 50 a quintal, respectively.

On NMCE, June contract moved up by Rs 108 to close at Rs 13,351. All the other contracts fell by Rs 55 to Rs 262 a quintal.

The total turnover on NCDEX dropped by 8,530 tonnes to 19,312 tonnes, while on NMCE it declined by 854 tonnes to 1,873 tonnes.

The total open interest on NCDEX declined by 182 tonnes to 23,684 tonnes. June and July positions dropped by 395 tonnes and 170 tonnes, respectively, to 3,121 tonnes and 10,339 tonnes. August moved up by 379 tonnes to 7,193 tonnes.

On NMCE, the total open interest increased by 142 tonnes to 2,478 tonnes, while June position stood at 204 tonnes.

Spot prices, however, ruled steady on Friday at previous levels of Rs 13,400 (un-garbled) and Rs 14,000 (MG 1) a quintal.