The Hindu Business Line : Bear operators depress pepper futures market

Kochi, Oct. 1 Pepper market which witnessed high volatility on Wednesday was depressed by the bear operators and in turn, might drive the buyers away. In fact, the fundamentals remain strong because of the tight supply position in all the origins.

“They know the people cannot buy as they cannot remit money because of the Bank holidays. They just wanted to send wrong signals to the overseas buyers and depress the market,” Mr Kishor Shamji, President, IPSTA told Business Line.

Some business has already taken place last night with the US and Europe at $3,400 a tonne (c&f). Most of the exporters are not taking positions because of high volatility in the rupee-dollar exchange rates and apprehensions on the availability of the material from the exchanges.

Thousands of tonnes of pepper are traded everyday in the exchange but delivery remains uncertain, trading sources pointed out.

MNC s with international operations were also showing interest to buy and that indicates the tight supply position in other origins.

The spot market here is closed on account of Id-ul-Fitr. In the International market, there wasn’t much activity as there was Jewish Holiday in the US and Indonesia is closed for Id-ul-Fitr.

October contract fell by Rs 101 a quintal to close at Rs 13,827. November and December contracts declined by Rs 111 and Rs 105 to close at Rs 14,040 and Rs 14,260 a quintal respectively on NCDEX.

Turnover up

Total turnover went up by 3,311 tonnes to 10,078 tonnes. Total open interest dropped by 248 tonnes to 17,993 tonnes. Net open position for October fell by 438 tonnes, while that of December and January moved up by 45 tonnes and 146 tonnes respectively.

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