The Hindu Business Line : Pepper futures get a bear hammering

Kochi, Sept. 10 Domestic pepper futures fell sharply on Monday to below spot prices on bearish activities and the quantitative restrictions on the nearby month position despite the prices of other origins ruling high and firm.

Indian parity was at $3,300 a tonnes (f.o.b.) and there was business taking place at this level. Others were offering Asta grade at $3,650 a tonnes (f.o.b.).

Buying interest was there in view of the winter and Christmas, market sources told Business Line. However, the exporters were said to be not in a position to cover.

In the international market the buyers were by and large quiet. And yet, Vietnam prices moved up probably influenced by the upward trend in the Indian futures market last week.

Vietnam was offering 500 GL at $3,150 a tonnes f.o.b., while 550 GL at $3,270 a tonnes (f.o.b.). V Asta was quoted at $3,650 a tonnes (f.o.b.).

In Indonesia Lampong Asta remained steady at $3,650-3,675 a tonnes (f.o.b.), while FAQ 500 GL was at $3,350 a tonnes (f.o.b.).

Vietnam was offering white pepper at $4,850 a tonnes (f.o.b.). The higher prices fetched by the white pepper has led to a squeeze in Asta grade pepper as the bold berries are being converted in to white.

CONTRACT POSITION

September contract on NCDEX fell by Rs 299 a quintal on Monday to Rs 12,214. The drop in other contracts was from Rs 324 to Rs 405 a quintal.

On NMCE, September contract dropped by Rs 427 a quintal to Rs 11,905. The fall in other contracts was from Rs 310 to Rs 365 a quintal.

Turnover up

Total turnover on NCDEX increased by 3,226 tonnes to 18,510 tonnes, while of September and October was up by 10 per cent and 77 per cent respectively.

On NMCE, total turnover went up by 578 tonnes to 1,918 tonnes.

Open interest

Total open interest on NCDEX moved up by 45 tonnes to 23,697 tonnes. September position dropped by 20 per cent, while October and November increased by 49 per cent and 16 per cent respectively.

Open interest on NMCE increased by 132 tonnes to 2,299 tonnes.

Spot prices in tandem with the futures market trend dropped by Rs 200 a quintal to Rs 12,000 (ungarbled) and Rs 12,600 (MG 1) on Monday.

Last week, trading at the Commodity Exchange, showed an increasing trend, particularly for October and November contracts. Spot prices increased marginally by 1-2 per cent and futures prices increased by 6-7 per cent.

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