The Hindu Business Line : Pepper futures gain; spot rates steady

September contract went up by Rs 24 a quintal to Rs 14,055 while October and November moved up by Rs 25 and Rs 21 respectively to Rs 14,355 and Rs 14,600 a quintal.

Total turnover dropped by 2,740 tonnes to 3,983 tonnes, while total open interest declined by 4 tonne to 20,106 tonned. The market seems to be correcting itself as the recent fluctuations were without any connection with the fundamentals and ground realities.

Spot prices continued to remain steady as there was no selling pressure at all. There was good domestic demand, which was being met directly from the primary markets.

In the international market the availability is likely to be limited in the coming months and till the next Vietnam crop arrives in the market in Mar/Apr 2009. The current carry over stock in Vietnam, according to reports, is estimated to be less than 10,000 tonnes.

Indonesian crop harvesting of which has been delayed is likely to be around 15,000 tonnes. The Brazilian crop is likely to be around 35,000 tonnes.

Thus, the availability for the next six months might not be sufficient to meet the demand, market sources told Business Line. Therefore, the demand could move up from September, they said.

Indian parity is $3,475 tonne (c&f) for Europe and $3,525 a tonne (c&f) for the US. Overseas buyers were reported to have been inactive probably because of "weaker advices" from Brazil and Ecuador. E Asta was quoted 3,250 a tonne c&f US. Brazil Asta was reportedly traded at $2,900 (f.o.b.).

Vietnam has quoted 500 GL and 550 GL at $2,850 and $3,025 a tonne respectively (fob) HCMC. Vietnam white pepper was offered at $4,415 a tonne (f.o.b.).

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