The Hindu Business Line : Bears hammer pepper futures down

Vietnam reported to have offered 500 GL at $3,800 a tonne (f.o.b) and 550 GL at $4,000 a tonne while white pepper was at $5,400 a tonne (f.o.b). Vietnam was not selling Asta grade pepper.

Indonesia said to have offered L Asta at $4,125 (c&f) while Brazil was offering B Asta at $3,950 a tonne (f.o.b). Indian parity is at $4,000 a tonne (c&f). According to international market players, given the present market trend, Indian pepper is placed at an advantageous position and "is Best Buy".

US buyers are reported to have adopted a wait-and-watch attitude, anticipating that the Indian prices would fall in the coming days following the revision of the open position and near month level limits for members and clients.

Bulls holding back positions would liquidate. Those hedging against sales would also have problems. No seller was coming forward to sell spot.

Overseas demand

There is reportedly a demand from West Asian countries for 500 GL Indian pepper at premium price. Exporters were covering from the futures and offering to the overseas market.

May contract on NCDEX fell by Rs 381 a quintal to close at Rs 14,110 on Wednesday from Rs 14,491 on Tuesday. The drop in other contracts was from Rs 309 to Rs 392 a quintal.

On NMCE, May contract matured and 366 tonnes of pepper delivered. June contract fell by Rs 220 to close at Rs 14,351 from Rs 14,571 a quintal. The fall in contracts was from Rs 351 to Rs 600 a quintal.

Turnover up

The total turnover on NCDEX increased up by 5,049 tonnes to 33,780 tonnes while on NMCE it moved up by 658 tonnes to 3,353 tonnes.

Open interest

The total open interest on NCDEX declined by 855 tonnes to 27,622 tonnes. May position fell by 385 tonnes to 2,023 tonnes while June position fell by 924 tonnes to 17,663 tonnes. July went up by 405 tonnes to 4,300 tonnes.

On NMCE total open interest moved up by 138 tonne to 3,143 tonnes. June position increased by 71 tonnes to 2,543 tonnes.

Spot price

Spot prices in tandem with the futures market trend dropped by Rs 200 a quintal to close at Rs 13,800 (un-garbled) and Rs 14,400 (MG 1) on Wednesday.

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