The Hindu Business Line : Pepper futures market falls on liquidation

Kochi, Dec. 11 Pepper futures market witnessed a sharp fall on Tuesday on liquidation by bulls and reports of good crop in Vietnam and large quantity of pepper available in Indonesia.

“This could be a marketing tactics to drive away buyers from other origins till the Vietnam crop arrives in the market”, market observers here told Business Line.

There are 4,000 tonne of pepper for December delivery but buyers are said to apprehensive of the quality of the goods in the warehouses of the exchanges. Reduction in tolerance levels is said to be a reason for the decline in delivery. “Intervention in running contracts is hampering the market” and as a result the buyers are loosing confidence, they alleged.

The quantity restrictions are also restricting the buyers despite the availability of December delivery almost at farm grade price, they said.

Meanwhile, the reports that Indian importers have concluded business with Indonesia 3,000 tonnes of L Asta at $3,200 a tonne (c&f) Kochi have also added pressure on the futures market. The Indonesian produce will have 12 per cent moisture, 3 per cent light berries, all one per cent higher than that of MG 1, they said.

Indian parity has dropped to $3,500 a tonne (c&f) while all the other origins remained below the Indian price.

CONTRACT POSITION

December contract on NCDEX on Tuesday fell by Rs 373 a quintal to close at Rs 12,670 from Rs 13,043. All other contracts dropped by Rs 167 to Rs 454 a quintal.

On NMCE December contract dropped by Rs 304 a quintal to close at Rs 12,648 from Rs 12,952. Fall in other contracts was from Rs 160 to Rs 407 a quintal.

Turnover up

Total turnover on NCDEX increased by 2,530 tonne to 12,003 tonne while December and January turnover went up by 10 per cent and 76 per cent respectively.

On NMCE total turnover moved up by 291 tonne to 1,356 tonne.

Total open interest on NCDEX went up by 148 tonne to 19,651 tonne. December position declined by 21 per cent while January moved up by 53 per cent.

On NMCE total open interest moved up by 7 tonne to 1,534 tonne.

Spot prices

Spot prices in tandem with the futures market trend fell by Rs 200 a quintal to close at Rs 12,500 (un-garbled) and Rs 13,100 (garbled) on Tuesday.

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