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G K Nair

Kochi, Sept 9 Pepper futures market bounced back on Tuesday following positive reports from the US market and lack selling pressure on the spot.

Good domestic demand is directly met from the primary markets. September contract moved up by Rs 106 a quintal to close at Rs 13,175. October and November also went up by Rs 112 and Rs 115 a quintal to Rs 13,440 and Rs 13,690 respectively on Tuesday on the NCDEX. However, price of all the three contracts remained much below the spot price of MG 1.

Total volume dropped by 2,157 tonnes to 5,600 tonnes while total open interest December lined by 250 tonnes to 19,719 tonnes, market sources told Business Line. 218 tonnes were covered in October while December saw liquidation. Though the market was up, the weakening of the rupee against the dollar kept the Indian parity unchanged at $3,200 a tonne for Europe and $3,325 a tonne both c&f for US, they said.

Spot prices remained unchanged on Tuesday at Rs 13,200 (un-garbled) and Rs 13,800 (MG 1) as there were no sellers of ready pepper. In the international market, Brazil continued to remain easier while other origins ruled steady at previous levels. Prices quoted for different origins C&F New York were MG 1 (Asta) $3,300-3,400 a tonne. Lampong Asta was quoted at $3,600 (fob) and Vietnam Asta at $3,250-3,275 a tonne (c&f). Vietnam 500 GL and 550 GL were offered at $2,650 and $2,825 a tonne (fob). Brazil Asta new crop was reportedly traded October/November shipments at $2,700 (fob) and B1 at $2,650a tonne (fob) September/October.

According to sources, Brazil’s new crop is expected to be at 35,000 tonnes. The carry over stock is estimated to be between 10,000 and 12,000 tonnes. The harvesting is reportedly in full swing. Indonesia, where also harvesting is under way, is also reported to have a small crop likely to be somewhere between 10,000 and 15,000 tonnes. Probably because of this reason there hasn’t been any selling pressure from Indonesia during the past four months. According to another report, Indonesia has offered L Asta September/December shipments at $3,475-3,575 a tonne (c&f). MG 1 September/October shipments were quoted at $3,399-3,375 a tonne (c&f). Brazil Asta was quoted at $2,600-2,700 a tonne (fob) B1 560 GL September/December at $2,500-2,600a tonne (f.o.b.) Belem. Resellers were offering MLSV September/December at $3,250-3,350 a tonne (c&f) New York while January/June shipments at $3,300-3,425 a tonne (c&f). White pepper prices continued to rule high at $4,800-4,975 a tonne (c&f).

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