The Hindu Business Line : Pepper prices unlikely to cool

Prices in Vietnam continue to be firm while other origins ruled steady. Investors could invest in the commodity whenever there is a decline in the prices, market observers told Business Line.

If the prevailing situation is any indication, the prices are unlikely to collapse given the tight supply position in the world market, they predicted. Contrary to the expectations that there would emerge a selling pressure in early April in Vietnam and a consequent fall in prices, it continued to rule high and stable there.

A similar situation exists in India also where the selling pressure has slowed down while the futures market continued to show an upward trend. The April contract on NCDEX matured and 916 tonnes of pepper were delivered. All the contracts on Saturday moved up in the futures market.

May contract on NCDEX increased by 116 tonnes to 15,851 tonnes on Saturday. The rise in other contracts was from Rs 121 to Rs 362 a quintal.

On NMCE, May contract moved up by Rs 103 to Rs 14,900 a quintal.

The increase in other contracts except September was from Rs 73 to Rs 106 a quintal. September contract dropped by Rs 184 a quintal. On NMCE, May contract moved up by Rs 103 to Rs 14,900 a quintal. The increase in other contracts except September was from Rs 73 to Rs 106 a quintal. September contract dropped by Rs 184 a quintal.

The total turnover on NCDEX fell sharply by 19,250 tonnes to 17,754 tonnes, while on NMCE it dropped by 2,911 tonnes to 2,203 tonnes.

The total open interest on NCDEX fell by 1,372 tonnes to 31,666 tonnes. May position dropped by 1,379 tonnes to 15,739 tonnes, while June declined by 9 tonnes to 10,729 tonnes.

On NMCE, the total open interest declined by 53 tonnes to 4,115 tonnes. May position fell by 122 tonne to 2,395 tonne while Jun was at 1,252 tonnes. The spot prices ruled steady at weekend close at Rs 14,400 (un-garbled) and Rs 15,000 (MG 1). Compared to last weekend spot prices showed an increase of Rs 100 a quintal. The turnover during the week showed a sharp fall of 2,17,008 tonnes to 2,42,630 tonnes on NCDEX, while on NMCE it dropped by 35,386 tonnes to 34,520 tonnes.

The total open interest also fell by 3,669 tonnes to 32,582 tonnes during the week on NCDEX. However, the decline in NMCE was 553 tonnes to 4,115 tonnes.

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