The Hindu Business Line : Pepper futures continue to decline

Exporters were not offering as they were said to be unable to cover even though stocks were available at low prices on the exchanges, because of the quantitative restrictions.

If exporters were allowed to cover, it would have stabilised the market, market observers told Business Line. In the international market buyers are waiting and watching, but with interest to cover at bid prices.

The continuous decline in Indian parity has started reflecting on the prices of other origins. Brazil and Indonesia said to have reduced their pepper prices.

Indian parity was at $3,475-3,500 a tonne (c&f), but still remained competitive. Indonesia was offering L Asta at $3,400 a tonne (f.o.b.). B Asta was reportedly being offered at $3,350-3,400 (f.o.b.) and B1 560 GL at $3,300 (f.o.b.). Vietnam was not quoting for V Asta. However, it was quoting 500 GL at $3,200 (f.o.b.).

CONTRACT POSITION

The September contract on the NCDEX declined further on Wednesday by Rs 82 a quintal to close at Rs 12,605. The fall in other contracts was Rs 50-75.

On the NMCE, the September contract dropped by Rs 38 to close at Rs 12,520. The drop in other contracts was Rs 41-276.

The total turnover on the NCDEX fell by 5,274 tonnes to 17,999 tonnes. The September turnover dropped by 29 per cent and the October contract by 63 per cent. On the NMCE, turnover declined by 246 tonnes to 1,991 tonnes. Total open interest on the NCDEX dropped by 570 tonnes to 22,517 tonnes. The September position fell by 41 per cent and the October position by 44 per cent.

On the NMCE, the total open interest moved up by 41 tonnes to 2,382 tonnes. The September position stood at 562 tonnes and that of October at 1,674 tonnes.

Spot prices remained unchanged at previous levels at Rs 12,500 (un-garbled) and Rs 13,100 (MG 1).