The Hindu Business Line : Pepper futures fall below spot prices

Pepper futures market dropped on Tuesday on bearish activities. August contract dropped by Rs 156 to Rs 14,010, below the spot prices for MG 1. The fall in other contracts was from Rs123 to Rs201 a quintal.

Bulls were liquidating or switching over to next positions for a premium. There was selling pressure for August delivery. Those holding short positions were forcing delivery.

Investors were not ready to cover back as they were not certain about the quality of the material, market sources told Business Line.

In fact, exchange pepper was available cheaper. The NCDEX is said to be holding a stock of around 5,700 tonnes now.

They said the market was in the “grip of market manipulators and as such there is uncertainty in the prices and that was sending out wrong signals”. But, so far does not seem to have influenced other origins because of a possible tight supply position, they said.

Turnover drops

Total turnover on NCDEX dropped by 1,655 tonnes to 6,598 tonnes. Total open interest also declined by 192 tonnes to 20,486 tonnes. The open interest for August fell by 1,685 tonnes, while that of September declined by 16 tonnes. October moved up by 121 tonnes.

Domestic demand is there but the buyers seem to be on a wait and watch mode. There was no selling pressure on spot. Spot prices in tandem with the futures market trend dropped by Rs 100 a quintal to close at Rs 13,700 (un-garbled) and Rs 14,300 a tonne (MG 1) on Tuesday.

International market was slower. However, the prices ruled steady. Indian parity for US was at $3,625 a tonne (c&f) while for Europe it was $3,550 a tonne (c&f). V Asta was quoted at $3,450 a tonne (f.o.b) while 550 GL at $3,050 a tonne (f.o.b). B Asta was being offered at $3.050-3,075 a tonne (f.o.b).

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