The Hindu Business Line : Pepper futures bounce back on buying support

Kochi, July 22 Pepper futures market on Tuesday bounced back on good buying support on the assumption that the UPA Government would survive the no-confidence motion.

Consequently, the Bull operators were buying back futures deliveries in the national exchange. Buying by processors of un-garbled pepper at Rs141 - 142 a kg was also seen. Domestic players were even ready to pay higher prices for un-sieved bolder berries, market sources told Business Line.

As a result, the turn over on Tuesday increased to 16,283 tonne as against 14,714 tonne on Monday on the NCDEX. Net open position also moved up by 745 tonne to 22,208 tonne. Futures prices moved up by over Rs 300 a quintal while the spot pepper was higher by Rs 200 a quintal. Spot availability was tight as growers were waiting for better prices. Meanwhile, the primary markets were very active as upcountry buyers were said to be buying directly from there at terminal market prices for moving out the commodity by evading tax from the border areas, they said. Indian parity has gone up to $3,750 - $3,800 a tonne (c&f).

Strengthening of the Indian rupee against the dollar is making the Indian pepper further un-competitive, they claimed. This would encourage imports, they said. Indonesia was offering at $3,800 - $3,850 (c&f). But, they might reduce its prices once the harvesting begins there next month, they said. Brazil was offering Asta grade at $3,400 - $3,500 a tonne (c&f) while Vietnam has quoted 550 GL at $3,300 a tonne (fob) and it is not offering any Asta grade at all, they said. In the spot market, the prices moved up by Rs 200 a quintal on Tuesday to Rs 14,800 (MG 1) and Rs 14,200 (un-garbled).

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