The Hindu Business Line : Pepper futures decline

Buyers were not interested in taking delivery of November contacts ending on Friday. As hedging was favourable, investors were selling November and buying December and January at a high premium.

Some were liquidating while others were switching over as there was premium for later positions. Selling pressure pulled the prices down, market sources told Business Line.

November contract on NCDEX dropped by Rs 226 to close at Rs 14,630 a quintal. December and January contracts fell by Rs 183 and Rs 205 respectively to close at Rs 15,014 and Rs 15,225 a quintal.

Turnover

Turnover dropped by 451 tonnes to 5,671 tonnes. Open interest moved up by 206 tonnes to 11,264 tonnes indicating switching over to nearby positions.

November open interest dropped by 252 tonnes while those of December and January moved up by 328 tonnes and 106 tonnes respectively.

Spot prices fell by Rs 200 in tandem with the futures market to close at Rs 14,000 (ungarbled) and Rs 14,500 (MG 1) a quintal. As the market was showing a declining trend, domestic buyers kept away, they said.

Based on the reports of expert analysts of brokers there were “buy and sell calls” creating high volatility in the futures market. Both were spreading bearish and bullish sentiments in the market. Apart from making the market highly volatile, this was confusing the trade, market sources said.

A momentum call from expert analysts of brokers through SMS on Friday said “Pepper Dec NCDEX – buy on break of (Rs ) 15280 targeting 15400/15420 with stop-loss below 15180, CMP 15265 (intra-day)”.

Investors were buying spot from processors.

Twenty to thirty tonnes were said to have been traded.

It is evident from the arrivals at the terminal markets that farmers were selling stocks held by them for over two years.

Meanwhile, big inter-State operators based in Rajasthan, Madhya Pradesh, Delhi, Bihar, Jharkhand, Maharashtra were actively buying large quantities based on the reports from a section of expert analysts. According to a report from Rajasthan 25-30 bags of pepper have arrived from Kollam (Kerala) by rail, evading tax, market sources said. These operators buy and stock and then cater to all other centres in the northern States.

Resumption of North-East monsoon in the southern districts of Kerala since Thursday might delay the harvesting further and it has also contributed to the bearish sentiment.

The new technique announced by the Spices Board recently for converting green pepper into white might enthuse the Kerala farmers to convert their produce into white given the high premium for it in the domestic market, said market sources. This phenomenon could lead to a squeeze in supply of black pepper in Kerala, trading sources predicted.

Indian parity in the overseas market ruled at $3,300 a tonne (c&f) and remained uncompetitive, they said. Therefore, no enquiries were forthcoming from the overseas markets, they added.

More Stories on : Spices & Condiments | Commodity Markets | Kerala

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

Stories in this Section
North-East monsoon may get into `surge mode' again

Wheat, barley acreage gains as rabi sowing picks up

MPEDA all set to issue catch certificates for EU exports

Spot rubber prices stretch further

Tea rules at last week’s levels in Kolkata auctions

Pepper futures decline

Spices export rises in Oct

States get back power to set cane prices

Fishermen to stage rally in New Delhi on Nov 29