The Hindu Business Line : Speculation keeps pepper futures hot

Vietnam reportedly reduced the price of 500 GL to $3,300 a tonne (f.o.b) but V Asta was being offered at $4,000 a tonne (f.o.b). Brazil and Indonesia were steady. L Asta was being sold at $3,850-3,900 a tonne (f.o.b). Indian parity was at $3,750-3,800 a tonne (c&f) and hence remained competitive.

Buying interest was there from overseas. Buyers had covered some quantity from India and other origins - Brazil and Indonesia through aggressively buying May and June and then slowed down for about a fortnight. This phenomenon believed to have forced the Vietnam price to decline. However, it is only for 500 GL, which is said to be un-cleaned pepper with 1-2 kg of dust in it and though bold it does not contain much starch.

June contract on NCDEX moved up by Rs 196 a quintal to Rs 14,002 on Thursday. The increase in other contracts was from Rs 279 to Rs 363 a quintal.

Turnover drops

On NMCE, June contract went up by Rs 95 a quintal to Rs 13,590. The rise in other contracts was from Rs 70 to Rs 250 a quintal.

The total turnover on NCDEX dropped by 4,558 tonnes to 44,368 tonnes, while on NMCE it declined by 622 tonnes to 3,686 tonnes.

The total open interest on NCDEX moved up by 974 tonnes to 25,441 tonnes. June position dropped by 658 tonnes to 12,835 tonnes while July increased by 1,398 tonnes to 8,470 tonnes.

On NMCE, total open interest declined by 92 tonnes to 3,252 tonnes, while June position fell by 148 tonnes to 2,388 tonnes.

There was no selling pressure on spot. In tandem with the futures market trend spot prices increased by Rs 300 a quintal on Thursday to close at Rs 14,000 (un-garbled) and Rs 14,600 (MG 1).