The Hindu Business Line : Pepper futures bounce back

Kochi, Sept. 24 Pepper futures market bounced back on Monday following rumours that the FMC would take some positive decision soon on the quantity restriction on nearby month position.

The futures moved up by Rs 117 to Rs 355 a quintal. Investors who came to sell expired stocks of MG 1 sold at discounted price. Of it, 100 tonnes were sold on Monday, while 250 tonne were sold on Saturday. This has led to a selling pressure pushing the market down in early trading. However, later it moved up and closed above the previous levels.

Vietnam and Indonesian markets were steady and watching the Indian futures market. The high volatility in the market without any reason has been driving away the entire world buyers, market sources told Business Line.

Pushing up the prices to higher levels much above the prices of other origins would make Indian pepper uncompetitive and that in turn, would help our competitors to sell their produce, they claimed. “We had better opportunities and that could not be exploited because of the quantity restriction and the manipulated high volatility of the market”, they alleged.

There were no sellers for ready pepper even though buyers were there.

On the international market scenario, a latest report from Brazil Pepper Trade Board said markets were steady and somehow dull. Purchases happened slowly from US and Europe.

New weakness of dollar rates was keeping origin prices up. Brazilian B1 was at $3,350 to $3,450 f.o.b. depending on source and quality, it said.

CONTRACT POSITION

October contract on NCDEX increased by Rs 274 a quintal on Monday to Rs 12,379. The increase in other contracts was from Rs 117 to Rs 322 a quintal.

On NMCE, October contract went up by Rs 326 a quintal to Rs 12,319. The rise in other contracts except January was from Rs 144 to Rs 355 a quintal. January contract dropped by Rs 80 a quintal.

Spot prices in tandem with the futures market trend increased by Rs 100 a quintal to close at Rs 11,900 (un-garbled) and Rs 12,500 (MG 1) on Monday.

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