The Hindu Business Line : Pepper futures recover on buying support

Bear operators were seen trying to cover back their sales. On the other hand, local dealers, who are not getting any replacement from the farmers, were approaching the exchange for meeting their requirements, market sources told Business Line. September contract on NCDEX shot up by Rs 385 a quintal to Rs 12,700 on Thursday which is Rs 100 below the spot price for spot un-garbled pepper. October and November contracts moved up by Rs 289 and Rs 298 to closed at Rs 12,821 and Rs 13,070 a quintal respectively. The rise in other contracts was from Rs 280 to Rs 330 a quintal. On NMCE, the prices moved up by Rs 99 to Rs 298 a quintal.

Turnover up

Total turnover on NCDEX increased by 1,953 tonnes to 8,649 tonnes. Total open interest dropped by 529 to 18,206. The September contract is to mature on Friday as the last day September 20 being Saturday. An estimated 1,200 tonnes of pepper is likely to be delivered.

Indian parity moved up to $3,025-3,050 a tonne (c&f) Europe and $3,125-3,150 a tonne (c&f) US.

According to a latest overseas report, Vietnam pepper was moving up and FAQ 500 was sold at $2,550 a tonne (f.o.b.), as there was a tight supply. Brazil reportedly traded B1 at $2,400 a tonne and B Asta $2,450 a tonne (f.o.b.).

In the international market, Vietnam was reportedly quote and there was no selling pressure from sellers and farmers as the prices were on a declining trend. Prices quoted were $2,600 a tonne (f.o.b.) for 500 GL and $3,000 for V Asta 570 GL. According to an overseas report the price are likely to move up shortly, as the carry over stock is said to be thin.

Meanwhile, according to reports from the US market, spot market there showed declining trend while the prices at different origins remained unchanged. Buyers are reportedly waiting for the prices to drop further.

Prices quoted for different origins were Vietnam 500 GL $2,525 a tonne (f.o.b.), 550 GL $2,675 a tonne (f.o.b.), V Asta $3,025 a tonne (c&f) New York, MG 1 Asta $3,050-3,100 a tonne (c&f) New York, Ecuador Asta $2,775 a tonne (c&f), Brazil B 2 $2,200-2,300 (f.o.b.), B 1 $2,300-2,400 a tonne (fob) and B Asta $2,500 a tonne (f.o.b..

MSLV Asta (Spot USA) was quoted at $3,250-3,3000 a tonne .

Vietnam white pepper double washed was being offered at $3,990 a tonne (f.o.b.).