The Hindu Business Line : Vietnam price fall rumours pull down pepper

Kochi, April 7 Pepper futures market after witnessing high volatility during the day declined at close on rumours of fall in Vietnam pepper prices and that the Government might stop futures trading under pressure from the left parties.

There were attempts to hammer down the pepper market by the bear operators. Since chilli and jeera have touched the lower circuit they want the pepper also to be down, market sources told Business Line.

There were some activities on the spot. But there was no selling pressure on un-garbled pepper.

The non-issuance of the notification reducing the CST as announced by the Finance Minister in his budget speech was hampering the market, they alleged. Consequently, the domestic demand is met by direct sales from the primary markets evading tax, they said.

According to an overseas report on the international market, Vietnam was quiet and steady. The status of other origins would be known by Tuesday.

CONTRACT POSITION

April contract on NCDEX dropped by Rs 80 a quintal on Monday to Rs 14,400. The drop in other contracts was from Rs 43 to Rs 185 a quintal.

On NMCE, April contract fell by Rs 124 a quintal to Rs 14,270. The fall in other contracts was from Rs 80 to Rs 260 a quintal. Total turnover on NCDEX moved up by 2,047 tonnes to 7,656 tonnes, while on NMCE it went up by 102 tonnes to 727 tonnes.

Total open interest on NCDEX declined by 109 to 18,522 tonnes. April position dropped by 32 per cent, while May and June moved up by 52 per cent and 13 per cent respectively. On NMCE, the total open interest dropped by 54 tonnes to 2,101 tonnes.

Spot prices ruled steady at previous levels of Rs 14,000 (un-garbled) and Rs 14,600 (MG 1) a quintal on Monday.

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