The Hindu Business Line : Pepper futures bearish on high volatility

Kochi, Nov. 19 The pepper futures market on Wednesday witnessed high volatility resultant from the tug of war between the bull and bear speculators and eventually the latter succeeded by pulling the market down.

November contract declined by Rs 18 on NCDEX at Rs 11,997 a quintal. December and January dropped by Rs 97 and Rs 54 respectively to close at Rs 12,103 and Rs 12,250 a quintal. Total turnover dropped by 1,151 tonnes to 7,826 tonnes. Total open interest declined by 92 tonnes to 12,273 tonnes. November and December net open positions dropped by 261 tonnes and 192 tonnes respectively to 6,573 tonnes and 4,097 tonnes on NCDEX.

SPOT PRICES UP

Spot prices on strong buying support moved up by Rs 100 to close at Rs 11,700 (un-garbled) and Rs 12,200 (MG 1) a quintal. Investors were liquidating spot Rs 300 below the December price and buying back December. Some good quantity is reported to have been traded. Exporters, dealers from upcountry and primary markets were buying.

Dealers from primary markets were buying from investors and selling in turn to exporters at Rs 200 premium a quintal on credit. The dealers were buying at Rs 11,900 a quintal at down payment and selling to exporters at Rs 121 a quintal. This shows that there is a credit squeeze in the market otherwise why should exporters buy on credit from the primary market dealers who are covering back themselves from the investors, market sources told Business Line.

Despite good buying support, the market declined under bears’ pressure, they added. Indian parity remained at previous levels of $2,700 a tonne (c&f) Europe and $2,800 a tonne (c&f) for the US.

In the international market, all the other origins reportedly remained steady/unchanged. The buyers were just reportedly waiting and watching.

More Stories on : Spices & Condiments

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
DGFT effects partial relaxation of ban on non-basmati rice exports

Easterly wave kicks up weather over southeast coast

Spot rubber under pressure

USDA estimates 7.8 mt decline in global sugar output

POABS asks Govt to expedite RBT tea estate registration

IVPA decries import duty on crude soyoil

Pepper futures bearish on high volatility

710 kg of tea offered on first day of e-auction