The Hindu Business Line : Downtrend continues in pepper

Kochi, Aug. 12 The downward trend continued in the pepper futures last week with the prices falling by Rs 230-406 a quintal on NCDEX and by Rs 53 to Rs 450 a quintal on NMCE at the weekend close. This happened at a time when the other origins ruled firm at higher levels, except for Brazil.

Spot prices fell by Rs 300 a quintal during the week to close at Rs 12,900 (un-garbled) and Rs 13,500 (MG 1) at weekend close.

However, reports of firming up of prices in Vietnam and Indonesia helped prices rebound on Saturday by Rs 251- Rs 317 a quintal on NCDEX and Rs 200-296 a quintal on NMCE. August contract on NCDEX increased by Rs 269 a quintal to close at Rs 12,985 on Saturday.

On NMCE, it went up by Rs 258 a quintal to close at Rs 12,990 from Rs 12,732.

The total turnover on Saturday on NCDEX fell sharply by 10,769 tonnes to 16,092 tonnes, while on NMCE it dropped by 869 tonnes to 929 tonnes.

Net open position on NCDEX for Aug dropped by 310 tonnes to 4,386 tonnes while that on NMCE declined by 46 tonnes to 543 tonnes.

Global scenario

In the international market Vietnam prices in spite of the absence of buying interest ruled steady.

Asta grade was quoted at $3,700 a tonnes (f.o.b.) while 500 GL and 550 GL were at $3,270 and $3,400 a tonnes (f.o.b.) respectively.

In Indonesia, LASTA was quoted at $3,700-3,750 a tonnes (f.o.b.) even after the harvesting said to have commenced there.

Indian MG 1, therefore, still remained competitive.