The Hindu Business Line : Pepper futures decline

Investors were buying NCDEX delivered at current prices. There was no spot selling due to the strike by the traders and merchants in the State to protest the entry of multinationals in retail marketing.

As the Indian parity is now in line with that of other origins, the overseas buyers in the US and Europe have adopted a wait-and-watch approach.

The buyers might step in next week if the increase in Indian parity is proved to be on the strength of the market and not on speculation, market sources told Business Line.

Since the August delivery is trading at higher levels, exporters were not ready to offer, they said.

In the international market, prices of other origins were steady at previous levels. Everybody seems to be waiting for the outcome of the export associations meeting in Jakarta, they said.

In the domestic market, Coorg pepper is reportedly cheaper and hence majority of the domestic players are concentrating there, they said.

Contract status

July contract on NCDEX declined by Rs 55 a quintal on Wednesday to close at Rs 14,975 from Rs 15,030 on Tuesday. The fall in other contracts was from Rs 74 to Rs 209 a quintal.

On NMCE, July contract dropped by Rs 213 a quintal to close at Rs 14,601 from Rs 14,814. The fall in other contracts was from Rs 210 to Rs 238 a quintal. Total turnover on NCDEX fell by 7,990 tonnes to 14,956 tonnes while on NMCE, it dropped by 999 tonnes to 1,367 tonnes. The total open interest on NCDEX dropped by 498 tonnes to 23,787 tonnes while July and August declined by 301 tonnes and 154 tonnes respectively to 5,148 tonnes and 13,870 tonnes.

Spot prices ruled steady on Wednesday at previous levels of Rs 14,100 (un-garbled) and Rs 14,700 (MG 1) a quintal.