The Hindu Business Line : Fall continues in pepper futures

Kochi, Aug. 23 Pepper futures market witnessed sharp fall on Thursday on bearish activities. The overseas buyers are scared as a result of the continuous fall in the prices allegedly created by market manipulators. Indian parity has fallen to $3,400 a tonne (c&f) and still are exporters ready to sell at $3,350 a tonne (c&f), market observers told Business Line.

It is sending out wrong signals to the world market besides influencing other origins. While Brazil has reduced its prices sharply, Vietnam remains silent. Indonesia, which has started harvesting, is watching the situation. Buyers are said to be cautious fearing that the prices would fall further.

Better Prices

Brazil was offering Asta grade at $3,300-$3,400 a tonne (fob) while B1 560 GL at $3,200-$3,300 a tonne. The current trend in the Indian pepper futures market is benefiting only the buyers, depriving the growers of better prices. Besides, it is negatively affecting the hedgers and exporters.

CONTRACT POSITION

September contract on NCDEX on Thursday fell by Rs 420 a quintal to Rs 12,209. The fall in other contracts was from Rs 330 to Rs 455 a quintal.

On NMCE September contract dropped by Rs 502 a quintal to Rs 12,045. The drop in other contracts was from Rs 266 to Rs 510 a quintal.

Total turnover on NCDEX increased by 4,474 tonnes to 22,473 tonnes. September, October and November turnover increased by 26 per cent, 65 per cent and 4 per cent respectively. On NMCE total turnover went up by 96 tonnes to 2,087 tonnes.

Total open interest on NCDEX increased by 1,069 tonnes to 23,586 tonnes. September position declined by 39 per cent, while October and November increased by 46 per cent and 5 per cent respectively. On NMCE total open interest dropped by 159 tonnes to 2,223 tonnes. September and October positions were at 570 tonnes and 1,507 tonnes respectively.

Spot prices in tandem with the futures market trend dropped by Rs 200 a quintal on Thursday to close at Rs 12,300 (un-garbled) and Rs 12,900 (MG 1).

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