The Hindu Business Line : Global pepper market likely to witness demand

The pepper futures market gained during the week as investors showed interest to buy and on reports of a cap likely on imports from Sri Lanka and possible opening of Pakistan market to Indian pepper.

All positions gained during the week substantially when compared to last Saturday's close. Badla also took place during the week.

Buying back May position and switching over to June/July took place. Investors also bought NCDEX delivered un-garbled pepper at prices below the spot prices. There has been no international demand as the world market adopted a wait- and-watch attitude. Add to this, the major players were busy with the ASTA Convention in the US, while those in Europe remained inactive.

Demand expected

The international market is likely to become active in the coming week and as the Indian parity continued to remain attractive some demand is expected to come in the coming days, market sources said.

Last trading price for May on Saturday showed a gain of Rs 62 during the week on NCDEX to Rs 6,610 from Rs 6,548 a quintal last Saturday (May 06), while on NMCE it shot up by Rs 171 to Rs 6,610 from Rs 6,439 a quintal.

The LTP (last traded position) for other positions on NCDEX increased from Rs 259 to Rs 418 a quintal during the week.

On NMCE, the rise was from Rs 185 to Rs 269 a quintal.

Rise in turnover

The total turnover of NCDEX increased from 1,793 tonnes on May 6 to 4,691 tonnes during the week, while on NMCE kit was 580 tonnes as against 529 tonnes on May 6.

Open interest on Saturday stood at 22,469 tonnes on NCDEX as against 19,083 tonnes on May 6, an increase of 3,386 tonnes.

Where as, on NMCE it declined by 1,372 tonnes to 2,224 tonnes from 3,926 tonnes last Saturday.

Buying support and short supply has pushed up the spot prices by Rs 250 a quintal during the week to Rs 6,650 (un-garbled) and Rs 7,050 (MG 1) on Saturday from Rs 6,400 and Rs 6,800 respectively on May 6.