The Hindu Business Line : Pepper falls as prices of other origins drop

Pepper futures witnessed sharp fall on Tuesday following reports of decline in the prices of other origins. "Everybody is slashing their prices following the beginning of harvesting in Indonesia while Brazil also followed suit as it seems to be eager to sell its fresh crop," market observers told Business Line. However, the current trend might change given the tight global availability position this year, they claimed. Vietnam was offering 500 GL at $3,300 a tonne f.o.b, while 550 GL was at $3,450 a tonne f.o.b and V Asta at $3,700 a tonne f.o.b. As the harvesting has begun in Indonesia and the fresh crop is estimated to be slightly better this year at 15,000 tonnes than that of last year, Lampong Asta has been reduced to $3,700 a tonne f.o.b. In line with the trend, Brazil also brought down its price of B 1 to $3,450 a tonne f.o.b and while B Asta to $3,550 a tonne f.o.b. Indian parity at $3,600 a tonne (c&f) continued to remain competitive.

Contract position

August contract on NCDEX fell on Tuesday by Rs 442 a quintal to Rs 12,830 from Rs 13,272 on Monday. The drop in other contracts was from Rs 476 to Rs 492 a quintal. On NMCE, August dropped by Rs 425 a quintal to close at Rs 12,685 from Rs 13,110. The fall in other contracts was from Rs 448 to Rs 555 a quintal. Total turnover on NCDEX increased by 9,117 tonnes to 28,552 tonnes, while on NMCE it moved up by 274 tonnes to 1,901 tonnes. Total open interest on NCDEX went up by 306 tonnes to 26,079 tonnes. August position dropped by 214 tonnes to 5,580 tonnes while September increased by 459 tonnes to 13,318 tonnes. October declined by 24 tonnes to 4,714 tonnes. On NMCE total open interest declined by 29 tonnes to 2,512 tonnes. August position also dropped by 78 tonnes to 1,065 tonnes. In tandem with the sharp fall in the futures market Spot prices also dropped by Rs 300 a quintal on Tuesday to close at Rs 12,900 (un-garbled