The Hindu Business Line : Pepper futures drop as buyers liquidate

Brokers were insisting that their clients liquidate. Those holding more than 100 tonnes of pepper liquidated; long operators were quick to do so, market sources told Business Line. Against 125 tonnes of spot pepper traded at Rs 142- 145 a kg on Thursday, only 50 tonnes were traded on Friday, and at Rs 140-144.

V Asta was quoted at $4,125 a tonne (f.o.b.) while L Asta at $4,150. Indian parity was at $4,000-4,050 a tonne (c&f). Brazil was offering September/December at $3,850-3,900 a tonne (fob) and July/August at $3,900-3,950.

European buyers were reportedly active in buying Asta grade from Brazil for converting into white, given the prevailing high prices for white pepper in the world market.

Vietnam was offering white at $5,400 a tonne, and Indonesia at $5,100.

CONTRACT POSITION

July contract on the NCDEX declined by Rs 69 a quintal on Friday to close at Rs 14,750. The drop in other contracts was Rs 242-292 a quintal.

On the NMCE, August contract fell by Rs 246 a quintal to close at Rs 14,590.

The fall in other contracts was from Rs 99 to Rs 290.

The total turnover on the NCDEX dropped by 4,938 tonnes to 24,556 tonnes, and by 831 tonnes to 1,216 tonnes on the NMCE.

The total open interest on the NCDEX moved up by 14 tonnes to 25,138 tonnes.

July and August positions dropped by 277 tonnes and 2,017 tonnes respectively to 965 tonnes and 8,915 tonnes.

The September position increased by 1,718 tonnes to 10,202 tonnes.

Similarly, October also rose by 320 tonnes to 3,232 tonnes.

On the NMCE, total open interest moved up by 24 tonnes to 2,341 tonnes. The August position was up by nine tonnes to 1,485 tonnes.

Spot prices in tandem with the futures market trend dropped by Rs 100 a quintal on Friday to close at Rs 14,000 (un-garbled) and Rs 14,600 (MG 1).