The Hindu Business Line : Pepper futures rebound on speculation

Kochi, Jan. 11 Pepper futures market bounced back on Friday on speculative activities after declining on bearish operations during the past couple of days.

Exporters who wanted coverage were trying to push the prices down, market sources told Business Line.

In the international market all the origins under the influence of the Indian trend, are gradually moving up but still they are far below the Indian parity of $3,925 a tonne (c&f).

In fact, the Indian parity is moving up without any overseas demand. As a result, the buyers who need to cover for the first quarter were buying whatever available cheap at present.

Brazil appears to be the favourable destination.

Meanwhile, according to Brazilian Pepper Trade Board, pepper market there switched dramatically overnight. Growers stepped out of the market as the prices increased by around 10 per cent in one day causing a strong run for the merchandise. “There is no way to offer any serious commitment at this moment. We will have to wait some days till the market comes down”, it said.

CONTRACT POSITION

January contract on NCDEX shot up by Rs 415 a quintal on Friday to Rs 14,520. The increase in other contracts was from Rs 367 to Rs 470 a quintal.

On NMCE, January contract increased by Rs 467 a quintal to Rs 14,340.

The increase in other contracts except June was from Rs 397 to Rs 510 a quintal. June contract dropped by Rs 87 a quintal.

Turnover

Total turnover on NCDEX soared by 15,880 tonnes to 27,203 tonnes, while that for January and February went up by 6 per cent and 68 per cent respectively.

On NMCE, total turnover increased by 1,363 tonned to 2,596 tonne.

Open interest

Total open interest on NCDEX went up by 1,107 tonnes to 23,220 tonnes. January position dropped by 11 per cent, while February and March moved up by 47 per cent and 29 per cent respectively.

On NMCE, total open interest moved up by 83 tonnes to 1,725 tonnes.

Spot prices

Spot prices in tandem with the futures market trend and buying support went up by Rs 200 a quintal on Friday to close at Rs 13,600 (un-garbled) and Rs 14,200(MG 1).