The Hindu Business Line : Pepper futures fall on speculation

Nobody seems to be interested in taking delivery from the exchanges because of the revised tolerance level limits as the operators are apprehensive of the quality of the material.

According to market sources over 6,000 tonne of pepper is lying in the exchanges. NCDEX has 3,695 tonne of pepper of which 3,568 tonne is said to be “valid stock”. Of this 719 “tenderable” in December is expiring on January 05, while 830 tonne is expiring in on February 05. Out of the 3,000 tonne December delivery, which is nearing maturity, there was a decline of 1,500 tonne during the past three days, they said. It gives the impression that some are “simply holding position and covering it back”

Meanwhile, the stock at NMCE is said to be 2,377 tonne of which “deliverable” is only 1,060 tonne.

Indian parity dropped to $3,500-3,525 a tonne (c&f) while Indonesia was quoting $3,400 a tonne (c&f). Brazil was offering cheaper. However, most of the exporters are reportedly closed from Monday for X’Mas and the New Year holidays. Markets are expected become active from the first week of January 2008.

CONTRACT POSITION

December contract on NCDEX dropped by Rs 137 a quintal on Monday to close at Rs 12,679 from Rs 12,816. The drop in other contracts was from Rs 97 to Rs 183 a quintal.

On NMCE December contract matured and 41 tonne of pepper was delivered. January contract fell by Rs 144 a quintal to close to at Rs 12,915 from Rs 13,059.

The fall in other contracts was from Rs 165 to Rs 199 a quintal.

Turnover up

Total turnover on NCDEX moved up by 2,099 tonne to 11,399 tonne while that for December declined by 6 per cent. January turnover moved up by 72 per cent.

On NMCE total turnover moved up by 172 tonne to 894 tonne.

Open interest

Total open interest on NCDEX declined by 49 tonne to 18,871 tonne.

December and January positions dropped by 10 per cent and 52 per cent respectively.

On NMCE total open interest dipped by 13 tonne to 1,387 tonne.

Spot prices in tandem with the futures market trend fell by Rs 100 a quintal to close at Rs 12,500(un-garbled) and Rs 13,100 (MG 1) on Monday.