The Hindu Business Line : Pepper futures drop in volatile trade

Kochi, Sept. 7 The pepper futures market witnessed high volatility on Friday and declined at the day’s closing despite the international remaining steady to firm.

The frequent sharp fall and steep rise has kept the buyers away due to lack of confidence in the market. Unless the manipulation and high speculation is controlled the market would continue to witness this kind of unhealthy trend, market observers told Business Line.

There was no selling pressure on spot. Arrivals have been very thin during the past eight weeks, they said. Most of the domestic demand is met by direct supply from the primary markets in the Kodagu region of Karnataka and Kerala’s Wynad and Idukki districts. The demand is slowly picking up and once it gained momentum the supply position would become more squeezed.

International pepper market was steady to firm but with some reported nervousness.

Brazil offered B Asta at $3,450a tonnes (f.o.b.) and B 1 at $3,350 a tonnes (f.o.b.) on Thursday night, Friday being a holiday on account of their Independence Day.

Vietnam was inactive. However, offers were being made at $3,150 -3,240 a tonnes (f.o.b.) for 500 GL.

Lampong Asta was quoted at $3,650-3,675 a tonnes (f.o.b.).

The Indian parity on Friday was at $3,550-3,625 a tonnes (c&f) and still remained competitive but for the high volatility in the futures market the buyers are resisting, they said.

CONTRACT POSITION

September Contract on NCDEX dropped by Rs 176 on Friday to Rs 12,695 a quintal. The drop in other contracts was from Rs 204 to Rs 226 a quintal.

On NMCE, September contract fell by Rs 180 a quintal to Rs 12,600. The fall in other contracts was from Rs 170 to Rs 317 a quintal.

Spot prices

Spot prices ruled steady at the previous levels of Rs 12,300 (un-garbled) and Rs 12,900 (MG 1) a quintal on Friday.