The Hindu Business Line : Rise in Vietnam prices pushes up pepper futures market

Kochi March 23 Upward trend in Vietnam prices pushed up Indian pepper futures market on Friday. Vietnam is reportedly offering 500 GL (FAQ grade) at $2,430 a tonne (fob) while 550 GL at $2,550 a tonne (fob) on Friday. They were not showing any inclination to sell spot. The tight situation continues to prevail. They are said to have no heavy pepper (Asta grade) now.

Besides, apprehending tight supply position later, Vietnam was not even offering beyond May, market observers here told Business Line. If the global tight supply position is any indication the prices are unlikely to go below $2,500 a tonne this year, they claimed.

Technical Correction

Brazil was offering B Asta at $2,700 a tonne (fob) while Indonesia was not offering now. Indian parity is at $3,100 a tonne (c&f), which is slightly on the higher side, they said. The current situation demands some technical correction, they claimed.

Domestic demand continued to be good and good trading activities are taking place in the primary markets.

Arrivals still remained thin at terminal markets. On NCDEX April contract increased by Rs 151 a quintal to close at Rs 13,110 on Friday from Rs 12,959 on Thursday. The rise in other contracts was from Rs 110 to Rs 168. On NMCE April contract went up by Rs 147 a quintal to close at Rs 12,740 from Rs 12,593. The increase in other contracts was from Rs 158 to Rs 546 a quintal.

Spot Prices

On good buying support spot prices also moved up by Rs 200 a quintal to close at Rs 11,800 (un-garbled) and Rs 12,400 (MG 1) on Friday.

The total turnover on NCDEX dropped by 2,681 tonnes to 31,794 tonnes while on NMCE it fell by 1,858 tonnes to 5,122 tonnes. Total open interest on NCDEX declined by 383 tonnes to 29,023 tonnes. April position dropped by 1,157 tonnes to 10,663 tonnes while May increased by 791 tonnes to 12,097 tonnes. The total open interest on NMCE moved up by 160 tonnes to 4,079 tonnes. April position was at 316 tonnes while May moved up to 2,483 tonnes.

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