The Hindu Business Line : Bears pull down pepper futures

Kochi, Aug. 22 Pepper futures market on Friday witnessed high volatility and closed below Thursday’s close on bearish activities. September contract declined by Rs 48 a quintal to Rs 14,430, below the spot price of Rs 14,500 for MG 1. Drop in October and November was Rs 41 and Rs 57 a quintal to Rs 14,720 and Rs 14,930 respectively.

Turnover dips

Total turnover fell by 1,147 tonne to close at 5,659 tonne on NCDEX, while the total open interest moved up 91 tonnes to 19,882 tonnes. There was no selling pressure on spot.

Spot prices continued to rule at previous levels of Rs 13,900 (un-garbled) and Rs 14,500 (MG 1) a quintal.

Material is not available in the primary markets also because those holding the stock do not want to part with it. There was no demand from overseas as the Indian prices were ruling above other origins on the one hand and uncertainty over the availability on the other.

Domestic demand has also narrowed down. “In fact, domestic demand is always slow in a declining market,” trading sources told Business Line. Indian parity on Friday was at $3,550 a tonne (c&f) for Europe and $3,650 a tonne (c&f) for the US.

In the international market, Vietnam remained steady at previous levels. It was offering 500 GL at $2,780-2,790 and 550 GL at $2,960 a tonne (f.o.b.). Indonesia continues to remain inactive in the export market. However, L Asta prices remained at higher levels at $3,550 a tonne (f.o.b.).

Indonesian sales

Meanwhile, there were unconfirmed reports quoting rumours that Indonesia had made some new crop sales. However, there was some selling pressure in Brazil and B Asta was traded on Friday at $2,975 a tonne (f.o.b.) and indications were there that Brazil might reduce further for want of orders/demand. B1 was offered on Thursday at $2,880 a tonne (f.o.b.).

The US market also reportedly remained without any activity and it is likely to continue till September 1.

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