The Hindu Business Line : Vietnam factor drives up pepper

Kochi, Feb. 26 Pepper futures market witnessed high volatility and speculators were pushing up the prices on reports of continuous rise in Vietnam pepper prices.

Investors were active in selling futures and buying spot pepper exchange delivered. Domestic demand was weak.

Arrivals continued to be almost half of what used to come during these days normally in previous. Besides, the pattern of arrival has also changed now with the goods coming directly to exporters or processors or direct suppliers, market sources told Business Line. On an average 100 tonnes of pepper arrive daily now as against 200 to 250 tonnes in the previous seasons.

Under the Vietnam influence Indonesia and Brazil are also said to have raised their pepper prices. Indonesian LAsta was being offered at $4,050 a tonne (f.o.b.) while Brazil B Asta at $3,650-3,750 a tonne (f.o.b.) and B1 at $3,700 a tonne (f.o.b.). Indian parity on Tuesday was at $4,150 a tonne (c&f).

Meanwhile, according to overseas reports, market in Vietnam was reportedly dull due to hot local prices, recent hike in interest rates and weak dollar. Pepper prices there continued to rise on tight supply. Prices quoted on Tuesday are FAQ 500 GL $3,850 a tonne (f.o.b.), FAQ 550 GL $4,050 a tonne (f.o.b.) and V Asta $4,410 a tonne (fob).

As the prices are ruling high at 60,000 VND a Kg farmers are said to be selling only one kg/day to meet their daily requirements.

CONTRACT POSITION

March contract on NCDEX on Tuesday moved up by Rs 114 a quintal to Rs 15,400. The increase in all other contracts except August was from Rs 158 to Rs 191 a quintal. August declined by Rs 6 a quintal to close at Rs 16,780.

On NMCE, March contract went up by Rs 35 a quintal to Rs 15,025 from Rs 14,990. The increase in other contracts except June was from Rs 5 to Rs 107 a quintal. June declined by Rs 31 a quintal to close at Rs 16,010.

Total turnover on NCDEX dropped by 466 tonnes to 19,919 tonnes, while that on NMCE also fell by 325 tonnes to 1,934 tonnes.

Total open interest on NCDEX increased by 1,074 tonnes to 22,094 tonnes. March position fell by 34 per cent, while that of April and May went up by 55 per cent and 7 per cent respectively.

On NMCE, total open interest declined by 50 tonnes to 1,631 tonnes.

Spot prices in tandem with the futures market trend and buying support went up by Rs 200 a quintal on Tuesday to close at Rs 14,300 (un-garbled) and Rs 14,900 (MG 1).