The Hindu Business Line : Pepper drops on selling pressure

Pepper futures market on Thursday witnessed a sharp fall on selling pressure and on reports that Vietnam had eased its price for FAQ 500 GL to $3,350 a tonne (fob).

More sellers came forward to sell futures. There was selling pressure of un-garbled pepper. Spot selling picked up and 150 tonne spot pepper were traded on Wednesday, while 85 tonnes on Thursday.

Negative impact

In fact, spot became cheaper than the nearby delivery and that was encouraging exporters to cover from spot.

The delayed action by the Forward Markets Commission to raise the near month level limit for members to 500 tonnes and clients to 170 tonnes also alleged to have had its negative impact on the market. A time bound action is needed from the regulator, market sources told Business Line.

In the international market, Brazil prices moved up on Wednesday but it did not influence the Vietnam prices. Vietnam Asta was quoted at $3,800-$3,850 a tonne (fob). Indian parity was at $4,000-$4,050 a tonne (c&f) USA and still remained competitive.

Spot prices on selling pressure declined by Rs 100 a quintal on Thursday to close at Rs 14,000 (un-garbled) and Rs 14,600 (MG 1).

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