The Hindu Business Line : Pepper futures move up on speculative activities

There were no spot sellers. However, investors holding expired stocks were putting it on sale. Some business said to have taken place at Rs 2-3 a kg below the October prices.

The exchange warehouses have doubled the charges from September 1 for stocks of which validity has expired. This decision has forced many to shift to other places and those could not were liquidating.

High volatility in the Indian futures market has kept the overseas buyers scared as they feel it has become an “online gambling”, market sources told Business Line.

According to Brazil Pepper Trade Board “pepper prices were steady to firm at origins with two exemptions: India where speculative exchanges pull prices up and down day-by-day and Brazil where some very cheap sales happened over the last 2 days, giving a renewed base to bears wake up”. Fundamentals did not change and prices at the week close were $3,250 in India, $3600 in Vietnam and $3,400 in Brazil, it said.

CONTRACT POSITION

October contract on NCDEX on Monday moved up by Rs 66 a quintal to close at Rs 11,898 from Rs 11,832 on last Saturday. The increase in other contracts was from Rs 53 to Rs 158 a quintal.

On NMCE October contract went up by Rs 64 a quintal to close at Rs 11,850 from Rs 11,786. The rise in other contracts was from Rs 58 to Rs 69 a quintal.

Total turnover on NCDEX on Monday increased by 4,079 tonne to 10,531 tonne, while that for October and November went up by 18 per cent and 68 per cent respectively. On NMCE total turnover moved up by 232 tonne to 654 tonne.

Total open interest on NCDEX increased by 116 tonne to 19,999 tonne. October and November positions dropped by 37 per cent and 38 per cent respectively while December moved up by 16 per cent. On NMCE total open interest declined by 88 tonne to 1,914 tonne. October position dropped by 91 tonne to 1,013 tonne.

Spot prices ruled steady at previous levels at Rs 11,700 (un-garbled) and Rs 12,300 (MG 1) a quintal on Monday.