The Hindu Business Line : Pepper futures slip

Increase in margin by the exchanges, NCDEX and NMCE, coupled with rumours that existing 2,500 tonne cap on import of black pepper from Sri Lanka has contributed to the fall.

The increase of margin money to 20-25 per cent for both buyers and sellers would negatively affect the investors and hedgers who are buying and selling goods, market observers here told Business Line. "In future, no investor will come as it will become online gamblers den," they alleged. This trend is not good for the futures trading, they added.

April Contracts down

On NCDEX, April contract fell by Rs 166 a quintal to close at Rs 14,731 on Thursday from Rs 14,897. The drop in other contracts was from Rs 132 to Rs 205 a quintal.

April contract, on NMCE, fell by Rs 196 a quintal to close at Rs 14,597 from Rs 14,793. The fall in other contracts was from Rs 200 to Rs 304 a quintal.

Turnover down

The total turnover on NCDEX dropped by 8,791 tonnes to 41,841 tonnes on Thursday, while on NMCE it declined by 1,069 tonnes to 5,767 tonnes.

The total open interest on NCDEX moved up by 682 tonnes to 35,152 tonnes. April position declined by 62 tonnes to 940 tonnes, while May and June went up by 394 tonnes and 305 tonnes, respectively, to 18,643 tonnes and 10,743 tonnes.

Open interest up

On NMCE, total open interest moved up by 110 tonnes to 4,261 tonnes. May position was at 2,674 tonnes and June at 1,222 tonnes.

Domestic demand continued to slow down. Coorg pepper was reportedly being traded at below Kerala price and there was selling pressure.

Spot prices

And yet, spot prices here ruled steady at previous levels of Rs 14,200 (un-garbled) and Rs 14,800 (MG 1) a quintal on Thursday.