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G.K. Nair

Kochi, Nov. 17 Pepper futures market moved up on buying support and short supply on Monday.

November contract increased by Rs 150 a quintal to close at Rs 11,575 on NCDEX. December and January contracts went up by Rs 100 and Rs 147 a quintal respectively to Rs 11,736 and Rs 11,831.

Total turnover dropped by 544 tonnes to 4,194 tonnes. Total net open position fell by 451 tonnes to 12,388 tonnes. November open interest dropped by 310 tonnes to 1,509 tonnes, while December open interest dropped by 238 tonnes to 6,650 tonnes. January figures moved up by 82 tonnes to 3,542 tonnes.

Investors were selling validity expired stocks Rs 200 to Rs 300 a quintal below the November and December prices. Those holding valid stocks were switching over to December.

Some businesses were taking place and the exporters were hence covering. Besides, dealers in the primary markets were also buying large quantities and that was giving the indication that the early harvesting as reported by analysts was not taking place and hence availability of matured black pepper of the new crop has yet to make a presence.

This has also contributed to the upward swing in the prices, market sources told Business Line.

Domestic demand continued to remain strong. Spot prices moved up by Rs 100 a quintal in tandem with the futures market trend to close at Rs 11,300 (un-garbled) and Rs 11,800 (MG 1) on Monday.

The weakened rupee against dollar has led to trickling in of scattered orders from selected pockets in overseas markets. Meanwhile, high volatility in the value of rupee against the dollar has become a matter of concern for exporters.

Indian parity continued to remain competitive at $2,600 a tonne (c&f) Europe and $2,700 a tonne (c&f) USA because of the continued weakening of the rupee. Parity for farther out positions in 2009 is $2,700 a tonne (c&f) Europe and $2,008 a tonne (c&f) USA.

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