The Hindu Business Line : Pepper futures continue to decline

However, Vietnam was reportedly offering 500 GL at $3,850 a tonne (f.o.b) and 550 GL at $4,000 a tonne (f.o.b), while V Asta was $4,050 a tonne (f.o.b). Indian parity was at $4,050 a tonne (c&f). Indian prices are at competitive level and hence there is a possibility of business coming to here, market observers told Business Line.

Meanwhile, Indonesian prices have soared on strong Rupiah against dollar and non-availability of pepper. Indonesian crop is said to arrive only in August. Lampung Asta was reportedly quoted at $4,500 a tonne (fob).

It was at this juncture that prices in the futures market here had experienced the decline, they said. Many bull operators were liquidating on May as was evident from the drop of 915 tonnes in the open interest for this month, which was not reflected anywhere. The difference in price between May and June was around Rs 6 per kg, while between May and July it was around Rs 12 a kg. Investors were ready to buy NCDEX delivered at Rs 3 premium over May prices. There were not much sellers for spot.

Futures down

On NCDEX, May contract fell by Rs 157 a quintal to close at Rs 15,265 on Monday from Rs 15,422 on Saturday last. The fall in other contracts was from Rs 74 to Rs 172 a quintal.

Spot prices were also in tandem with the futures market. Prices dropped by Rs 100 a quintal to close on Monday at Rs 14,200 (un-garbled) and Rs 14,800 (MG 1).

On NMCE, May contract dropped by Rs 209 to close at Rs 14,500 a quintal from Rs 14,709 at weekend close. The fall in other contracts was from Rs 54 to Rs 534 a quintal.

The total turnover on the NCDEX soared by 21,863 tonnes to 47,417 tonnes on Monday, while on the NMCE it increased by 1,695 tonnes to 4,310 tonnes.

The total open interest on the NCDEX declined by 970 tonnes to 29,877 tonnes. May position also fell by 915 tonnes to 5,718 tonnes as it is nearing maturity, while June position increased by 89 tonnes to 17,166 tonnes. July position has also moved up to 3,453 tonnes.

On NMCE, the total open interest went up by 189 tonnes to 4,242 tonnes. May position declined by 41 tonnes to 1,840 tonnes, while June increased by 241 tonnes to 1,931 tonnes.

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