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G. K. Nair

Kochi, Nov. 4 Pepper futures market, which shot up on Monday to over Rs 400 a quintal on good buying support, on Tuesday after high volatility closed marginally below Monday’s price.

November contract dropped by Rs 35 to Rs 11,195 a quintal. December and January declined by Rs 9 and Rs 10 a quintal to close at Rs 11,173 and Rs 11,159 on NCDEX.

Total turnover on NCDEX dropped by 1,693 tonnes to 6,873 tonnes. Total net open position fell by 248 tonnes to 13,958 tonnes. Open interest for November and December declined by 224 and 207 tonnes respectively to 3,876 tonnes and 6,556 tonnes. January position moved up by 177 tonnes to 2,890 tonnes.

Bear operators have brought down the market. Investors were seen not keen to sell their stocks after having sold substantially in recent weeks. Buyers were asking them to sell Rs 150 a quintal below the November price for validity expired stocks, market sources told Business Line.

In fact, the investors were taking advantage of the futures market mechanism. Spot prices remained at Monday’s levels at Rs 10,900 (un-garbled) and Rs 11,500 (MG 1) a quintal on Tuesday.

Strengthening of the Indian rupee has pushed up the Indian parity to $2,600 a tonne (c&f) Europe and $2,700 a tonne (c&f) for the US. Indonesia was reportedly offering at $2,900 a tonne (c&f) while Brazil said to have quoted B Asta at $2,450 - $2,500 a tonne.

The Americans, however, are reportedly reluctant to buy at this price because of high processing cost.

Heavy floods reported to have severely affected the pepper trade in Vietnam. Vietnam according to a report on Tuesday exported 65,533 tonnes of black and 7,535 tonnes of white pepper during the period from 01 Jan to Oct 10 this year making the total shipments from thereto 73,088 tonne.

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