The Hindu Business Line : Pepper futures decline on selling pressure

The prices, which were on an upward swing during the past few days, dropped on good selling pressure in the futures market. It could be seen as a technical correction, market observers said.

However, there was no selling pressure in spot while the arrivals continued to be nil at the terminal markets.

Dealers from the primary markets were picking up incoming lots for direct sales to north Indian buyers and exporters.

On NCDEX, MG1 delivered was offered at Rs 119 a kg, while buyers indicated Rs 118 a kg. Meanwhile, on NMCE, MG 1 delivered was said to have traded at Rs 115 a kg, a difference of Rs 4 a kg for the same product between the two exchanges on the same day!

The processors who sold to investors on Monday have shown interest to buy spot to cover their sales.

On NCDEX, February contract dropped by Rs 148 on Tuesday to close at Rs 11,750 a quintal. The decline in other positions was from Rs 177 to Rs 227 a quintal.

On NMCE, February fell by Rs 100 a quintal to Rs 11,620, while the drop in other positions was from Rs 25 to Rs 186 a quintal.

Turnover drops

The total turnover on NCDEX dropped by 5,633 tonnes to 16,080 tonnes on Tuesday while on NMCE it fell by 1,759 tonnes to 3,303 tonnes.

Open interest up

The total open interest on NCDEX was up by 67 tonnes to 23,616 tonnes. The February position however fell by 552 tonnes to 9,022 tonnes, while March was up by 386 tonnes to 8,588 tonnes.

On NMCE, the total open interest increased by 22 tonnes to 4,013 tonnes of which 3,565 tonnes was of March.

In the international market Vietnam has moved up to $2,800 a tonne (c&f) while Brazil is said to be firmer.

Strong rupee has affected the Indian parity, which is at $2,900 a tonne (c&f).

According to market observers, once direct sailing starts from the Kochi port to New York, Indian pepper would become more competitive.

The spot prices ruled steady on Tuesday at Rs 11,100 (un-garbled) and Rs 11,700 (MG 1) a quintal.