The Hindu Business Line : Pepper futures gain on lack of spot material

Kochi, Aug 20 Pepper futures market on Wednesday shot up on bullish reports. August contract moved up by Rs 243 a quintal to Rs 14,300, but Rs 200 below the spot price for MG 1. September and October also moved up by Rs 184 and Rs 196 a quintal respectively. Other contracts went up by Rs 158 to Rs 210 a quintal.

Bullish reports from the “seasoned traders” have influenced the market. Besides, non-availability of pepper in the spot market also contributed to the upward swing. However, the muscle power with which the market is being manipulated is not good and not well received by the small traders who are often compelled to leave the scene, market sources told Business Line.

Turnover up

Total turnover on Wednesday increased by 3,433 tonnes to 10,031 tonnes on NCDEX while total net open position moved up by 300 tonnes to 20,786 tonnes.

Indian parity ruled at previous levels of $3,525 a tonne (c&f) Europe and $3,650 a tonne (c&f) US, despite the rise in the futures market because of the strengthening of the rupee against the dollar, they said. In fact, India does not have much cargo to offer and the exporters are basing their quotes on the availability of cheap nearby delivery from the exchanges and adding the reprocessing charges, they said.

Supply from the primary markets is very tight as the pepper growers who are holding the stock do not seem to be influenced by the price factor but by their need for money, they said. “The stock is in the strong hands which can hold it for six to seven years,” they said.

International market ruled steady without any activity and the buyers were slow. Indian parity remained out-priced. There was no selling pressure on spot. Spot prices in tandem with the futures market trend moved up by Rs 200 a quintal to close at Rs 13,900 (un-garbled) and Rs 14,500 (MG 1) a quintal on Wednesday.

More Stories on : Spices & Condiments

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Bandopadhyay to be NMCE non-Govt independent director

Bay system forms, to trigger rains in East

Surender Kumar Tuteja takes over as Chairman of NBHC

Rubber producers urged to focus on output

19-week low offerings at Coonoor tea auction

No reversal seen in rising trend of tea prices

Curb likely in egg production

Farmers begin shelving Cochin ginger cultivation

Pepper futures gain on lack of spot material