The Hindu Business Line : Pepper futures up on domestic demand

Kochi, Aug. 3 Indian pepper futures market moved up at the weekend on strong domestic demand that in turn has made it out-priced in the world market. The fundamentals continued to remain strong.

The Indian futures market is negatively affected by the tug of war between the bulls and bears creating uncertainty in the prices.

“We were having some good opportunity last month but now we are loosing ground,” market sources told Business Line. On the other hand, the festival season is coming up, increasing the domestic demand.

Primary market prices are ruling above the terminal market prices and trading is taking place at this level.

In the Kodagu region, where the crop is said to be good, there could be selling pressure building up.

Since the Indian domestic market is so large that it could absorb the entire quantity from there, they said. Spot prices during the week moved up by Rs 200 a quintal to close at Rs 13,800 (un-garbled) and Rs 14,400 a tonne (MG 1).

The turnover during the week fell by 29,361 tonnes to 46,049 tonnes on NCDEX, while the net open interest declined by 1,075 tonnes to 19,962 tonnes. According to international reports, some exporters in Brazil are keen to offer B1 at $3,000 a tonne (Fob) and B Asta at $3,100 a tonne (fob).

Lampong Asta continued to rule firm at $3,500 a tonne (fob). Good business is said to be taking place in Vietnam as it has become easier. Vietnam was offering 500 GL at $2,780 - $2,800 (fob) HCMC and550 GL at $2,950 a tonne (fob). Meanwhile, Brazilian pepper is reportedly competitive in the Mexican and South American markets.

MG 1 Asta is quoted at $3,675 - $3,750 a tonne C&F New York while V Asta at $3,475 a tonne, B Asta at $3,100 - $3,150 a tonne.

Harvesting in Indonesia is to commence this month and it is looking for firm orders.

Brazil will also have its new crop by October/November Arrival of fresh crop from these two origins will tell how the market would move ahead, they added.

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