The Hindu Business Line : Bearish activities push down pepper futures

Kochi, July 9 The pepper futures market on Monday witnessed sharp fall on aggressive bearish activities despite the fundamentals in the world market remaining strong. There were no spot sellers at this rate.

The current bearish trend has resulted in the futures ruling below spot prices. Exporters won’t be able to cover although it is cheaper for want of availability because of the quantity restrictions on nearby position, market sources told Business Line.

According to them, international buyers were showing interest to buy but the exporters were said to be not in a position to make any commitment as they fear that they might not be able to cover and the material is not available in spot. Meanwhile, investors were looking for buyers outside, they said.

Moreover, the rupee continued to remain strong against dollar and this would push up the Indian parity while the imports would become cheaper, they said.

FUTURES POSITION

July contract on NCDEX on Monday fell by Rs 388 a quintal to close at Rs 14,271 from Rs 14,659 on last Saturday. The fall in other contracts was from Rs 290 to Rs 465 a quintal. The July contract on NMCE dropped by Rs 405 a quintal to close at Rs 13,911 from Rs 14,316.

The fall in other contracts except December was from Rs 131 to Rs 384 a quintal. December moved up by Rs 38 a quintal to Rs 15,700.

The total turnover on NCDEX increased by 4,986 tonnes to 18,085 tonnes, while on NMCE it went up by 450 tonnes to 1,407 tonnes. The total open interest on NCDEX moved up by 69 tonnes to 24,670 tonnes.

July position fell by 182 tonnes to 3,129 tonnes, while August declined by 150 tonnes to 14,561 tonnes. September went up by 273 tonnes to 4,028 tonnes. On NMCE the total open interest moved up by 73 tonnes to 2,862 tonnes. July position dropped by 128 tonnes to 1,325 tonnes.

Spot prices in tandem with the downward trend in the futures market dropped by Rs 200 a quintal to close at Rs 13,800 (un-garbled) and Rs 14,400 (MG 1) on Monday.

More Stories on : Spices & Condiments | Commodity Markets

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Bay may spring back to life by weekend

‘Andamans, a biosecure zone for disease-free shrimps’

Spot rubber prices improve

Prices skid

KPMG report calls for creation of strategic sugar stock

‘Cattle, sheep death not related to Bt cotton consumption’

RBI may transfer stake in Nabard to Govt

AP allots 100 tonnes palm oil for PDS

Increase in spices imports

Bearish activities push down pepper futures