The Hindu Business Line : Pepper futures fluctuate marginally

Kochi, July 17 Pepper futures market on Tuesday fluctuated marginally on bearish activities even as the prices in other origins for Asta grade continued to rule high. In fact, Indian pepper remains competitive at $3,925– 4,025 a tonne (c&f). Whereas, the price of Vietnam Asta grade was at $4,000-4,050 a tonne (c&f), Indonesia at $3,950–4,000 a tonne (c&f) and Brazil $3,900 a tonne (fob).

However, international buyers, on the assumption that there won’t be any relaxation in the quantitative restrictions on nearby position and consequently the prices would fall, are waiting and watching the Indian market, market sources told Business Line. The buyers are looking for distant positions.

A positive decision by the regulator on the quantitative restrictions favouring the genuine players would help increase the exports given the price advantage Indian pepper enjoys now, they claimed. Besides, the availability in the world market is projected to be tight even after the harvesting in Indonesia and Brazil, they pointed out.

Add to this heavy rains accompanied by strong winds in the main pepper growing districts of Kerala’s Idukki and Wayanad are likely to impact the pepper spikes negatively. However, it is too early to predict anything about the next crop at this point of time, they said.

CONTRACTS POSITION

July contract on NCDEX declined by Rs 12 a quintal on Tuesday to Rs 14,435. August and September moved up by Rs 25 and Rs 36 a quintal respectively, while all the other contracts dropped from Rs 27 to Rs 98 a quintal.

On NMCE, August contract moved up by Rs 63 a quintal to close at Rs 14,493 from Rs 14,430, September dropped by Rs 20 a quintal while October increased by Rs 41 a quintal. All the contracts remained at previous closing levels. Total turnover on NCDEX dropped by 1,524 tonnes to 16,963 tonnes, while on NMCE it moved up by 377 tonnes to 1,685 tonnes.

The total open interest on NCDEX went up by 136 tonnes to 24,633 tonnes.

There was no selling pressure on spot. Spot prices ruled steady at previous levels of Rs 13,900 (un-garbled) and Rs 14,500 (MG 1) a quintal on Tuesday.

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