The Hindu Business Line : Pepper futures drop on sales

New pepper started trickling in from Wayanad, Idukki and the southern districts. This development coupled with the selling by investors of validity expired stocks at Re one below the January delivery price pulled the futures prices down, market sources told Business Line. There was, in fact, a selling pressure.

January contact dropped by Rs 198 to close at Rs 11,202 a quintal on NCDEX. February and March fell by Rs 210 and Rs 175 to Rs 11,253 and Rs 11,315a quintal respectively.

Total volume fell by 2,341 tonnes to 5,475 tonnes while total open interest declined by 229 tonnes to 7,599 tonnes. Spot prices dropped by Rs 100 a quintal to close at Rs 10,900 (un-garbled) and Rs 11,400 (MG 1).Valid stock held by the exchange is estimated at around 1,000 tonnes while the volume of validity expired stock is anybody’s guess, they said adding it could be somewhere between 2,500 and 3,000 tonnes. Severe winter in north India forcing the retailers to remain indoors coupled with the truckers strike, which has stopped movement of the goods, has also contributed to the fall, they said.

Indian parity on Tuesday was $2,525 a tonne (c&f) Eruope and $2,625 a tonne (c&f) US. Brazil was said to be firmer mainly because of a stronger Real. Prices quoted c&f New York were MG 1 Asta $2,650-2,750 a tonne; Vietnam Asta $2,550 a tonne (f.o.b); Brazil Asta $2,050 a tonne (f.o.b) Vietnam white pepper $3,550-3,600 a tonne (c&f) New York, while Brazil white was offered at $3,600 a tonne (c&f) New York.

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