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G. K. Nair

Kochi, Aug. 8 Pepper futures market on Friday fell sharply on reports of possible curbs on the futures trading in commodities, raids on “bucket shops" in Chennai by the Forward Markets Commission and the reduction in the prices by Brazil.

Consequently, August contract on NCDEX fell by Rs 248 a quintal to Rs 13,900, below spot prices. September dropped by Rs 244 to Rs 14,186 and October by Rs 213 to Rs 14,510 a quintal. Other contracts also fell.

Total turnover shot up by 3,877 tonnes to close at 8,046 tonnes, while net open position moved up by 251 tonnes to 20,160 tonnes.

Some were trying to liquidate nearby position. August delivery was available at Rs 13,900 a quintal, Rs 400 below the spot price of Rs 14,300 a quintal for ready pepper. Raids on the ‘bucket shops’ conducting ‘dabba trading’ were long awaited, trading sources told Business Line.

Besides, they said, reports that the Union Finance Minister, has indicated the possibility of curbing futures trading in commodities also paved the way for the bearish activities in the market. Add to this was the reduction in Brazilian pepper prices.

Spot prices in tandem with the futures market trend fell by Rs 200 a quintal on Friday to close at Rs 13,700 (un-garbled) and Rs 14,300 (MG1).Indian parity on Friday was at $3,500-3,550 a tonne (c&f). Not much activities were reported from the overseas markets. Brazil was offering B Asta at $3,025 a tonne (f.o.b.) and B 1 at $2,925 a tonne (f.o.b.).

Vietnam has quoted V Asta at $3,525 a tonne (c&f). MLSV Astawas quoted C&F New York at $3,650-3,700 a tonne while ML Asta at $3,875-3,925 a tonne.

Muntok and Vietnam white pepper was quoted at $4,975-5,000 and $4,850-4,900 a tonne (c&f) respectively.

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