The Hindu Business Line : Pepper futures fall on bearish sentiments

Kochi, Aug 4 Pepper futures market on Monday witnessed a decline on all contracts on bearish activities. There was no activity for ready pepper. August contract was down by Rs 125 a quintal to close at Rs 14,065. The fall in other contracts was from Rs 100 to Rs 137 a quintal. Total turnover fell by 2,204 tonnes to 5,346 tonnes. Total open interest moved up by 125 tonnes to close at 20,087 tonnes.

August dropped by 246 tonnes while September and October went up by 41 tonnes and 314 tonnes respectively. Strengthening of the rupee against dollar has kept the Indian parity outpriced in the international market at $3,550 - $3,575 a tonne (c&f) despite the decline in the futures.

Domestic demand continues to be good. North Indian dealers are said to be moving around in the growing areas and primary markets, ready to buy at terminal market price and even at higher levels.

Even at higher levels, it would be beneficial to them when the product is moved out evading the tax, market sources said. MG 1 spot price is above the August price and hence some operators were ready to sell from selective warehouses at Re 1 above the August price, market sources told Business Line.

The current market trend does not appear to be in the interest of the futures market and requires some correction, they added. Spot prices in tandem with the futures market trend were down by Rs 100 a quintal to close at Rs 13,700 (un-garbled) and Rs 14,300 (MG 1) on Monday. The international markets are yet to re-open after the weekend holidays.

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