The Hindu Business Line : Pepper futures recover on buying support

Kochi, July 9 The pepper futures market on Thursday recovered after a week-long decline on buying support and closed significantly above yesterday’s closing.

Despite bearish operations and sell calls, the market moved up on higher level buying back albeit limited quantities. There was no spot selling pressure. Coorg pepper is said to be available anywhere in India at Rs12,500 a quintal.

July contract increased by Rs 164 to close at Rs 12,289 a quintal. August and September moved up by Rs 163 and Rs 157 respectively to close at Rs 12,450 and Rs 12,570 a quintal on NCDEX.

Total turnover increased by 943 tonnes to 2,646 tonnes. Total open interest dropped by 109 tonnes to 6,441 tonnes. July open interest fell by 336 tonnes to 3,317 tonnes, while that of August and September moved up by 201 tonnes and 25 tonnes respectively.

Spot prices

In tandem with the futures market trend, spot prices also moved up by Rs 100 to close at Rs 12,000 (un-garbled) and Rs 12,500 (MG 1) a quintal. In the international market, Indian parity declined to $2,625 a quintal on weakening of the rupee against the dollar.

Consequently, the difference between Indian price and that of other origins has been narrowed down.

Trading sources told Business Line, $200 a tonne difference is normal and acceptable as far as the Malabar is concerned.

According to an overseas report from the US on Wednesday night market remained unchanged from most origins. Ecuador was pushing for bids on their ASTA pepper. Muntok was easier.

Prices quoted per tonne c&f New York on Thursday were MG1 Asta $2,650-2,750; Lampong Asta $2,400; Vietnam Asta $2,475; Vietnam 500 GL$2,100 a tonne (fob); 550 GL $2,215 a tonne (fob); Brazil Asta $2,425-2,450 a tonne (fob) nominal quote and Ecuador Asta 2,500 a tonne (soliciting firm quotes).

Vietnam white pepper was quoted at $3,550-3,600 (c&f) and Muntokwhite $4,125 a tonne (c&f).

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