The Hindu Business Line : Pepper futures market steady

Kochi, Jan. 2 Pepper futures market was almost steady on Wednesday despite bearish activities following reports that the Vietnam new crop is going to be stable at last year’s levels.

Indian current crop is also said to be at around 50,000 tonnes due to unfavourable weather conditions.

New crop arrivals at the terminals have not yet started. Normally, it used to come from late November onwards.

Still, the Indian parity remained at $3,675-3,700 a tonne (c&f), which is much above the prices of other origins, market sources told Business Line.

The international markets are slowly resuming its activities after the X’mas holidays. Vietnam was offering FAQ 500 GL at $3,150 a tonne (f.o.b.). Only light pepper from the new crop was available.

Lampong Asta was being offered at $3,250 a tonne (f.o.b.).

PEPPER OUTPUT

According to a survey conducted by Kodak Commodity Services Limited (KCSL), the Indian current pepper crop is estimated to be somewhere between 48,000 and 50,000 tonnes. It is stable to low compared to last year, it said. Depleting stocks and good exports could keep the prices firm, the survey added.

Meanwhile, a crop survey in Vietnam by the Vietnam Pepper Association (VPA) is underway and the initial indications show that the crop might be at the level of last year or slightly higher. Vietnam crop which will come in March will be the deciding factor for the commodity in the coming months.

CONTRACT POSITION

January contract on NCDEX declined by Rs 8 a quintal on Wednesday to Rs 13,350. All other contracts moved up by Rs 12 to Rs 183 a quintal.

On NMCE, January contract went up by Rs 25 a quintal to close at Rs 13,300 from Rs 13,275. The increase in other contracts except April and May was from Rs 18 to Rs 41. April and May declined by Rs 15 and Rs 49 a quintal respectively.

Total turnover on NCDEX dropped by 762 tonnes to 9,380 tonnes, while on NMCE it moved up by 203 tonnes to 874 tonnes.

Total open interest on NCDEX went up by 145 tonnes to 19,246 tonnes. January position dropped by 27 per cent, while February and March moved up by 49 per cent and 12 per cent respectively.

On NMCE, total open interest moved up by 58 tonnes to 1,391 tonnes.

Spot prices ruled steady at previous levels at Rs 12,900 (un-garbled) and Rs 13,500 (MG 1) a quintal on Wednesday.

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