The Hindu Business Line : Pepper futures decline as players adjust limits

Falling prices
Brazil Asta grade pepper prices at $3,600- 3,700 a tonne (f.o.b.)
Indonesian Lasta at $3,850-3,900 a tonne (f.o.b.)
V Asta at $3,800-3,850 a tonne (f.o.b.)
Indian parity at $3,750-3,800 a tonne (c&f).

Kochi June 19 Pepper futures declined on Tuesday as the market players were adjusting their limits because of the quantitative restrictions, which will become effective from Wednesday.

As the future deliveries are available at lower rates the exporters were offering Asta grade pepper cheaper.

This phenomenon and the declining trend in the Indian prices seem to have compelled the Pepper Exporters Associations in Brazil, Indonesia and Vietnam to convene a meeting in Jakarta on Jun 25 - 28 to review the present international market scenario and why India is volatile and selling Asta pepper cheap, market sources told Business Line.

Besides, it will hold discussions on marketing strategy and pepper plantation survey, they said.

All other origins world over, were steady at higher levels while the Indian parity kept on dwindling. Brazil was offering Asta grade pepper at $3,600- 3,700 a tonne (f.o.b) while Indonesian parity for Lasta was said to be at $3,850-3,900 a tonne (f.o.b) and V Asta at $3,800-3,850 a tonne (f.o.b). Where as, the Indian parity was at $3,750-3,800 a tonne (c&f).

Meanwhile, some players in Europe were talking down the market by spreading rumours that other origins were offering at very low prices, they alleged.

FUTURES DECLINE

June contract on NCDEX declined by Rs 36 a quintal on Tuesday to Rs 13,628.

The drop in other contracts except December was from Rs 12 to Rs 49 a quintal. December increased by Rs 297 a quintal to Rs 15,689.

On NMCE, July contract dropped by Rs 30 a quintal to Rs 13,770.

August and October fell by Rs 23 and Rs 130 a quintal respectively, while September and November increased by Rs 12 and Rs 84 respectively.

TURNOVER DROPS

The total turnover on NCDEX dropped by 2,088 tonnes to 22,445 tonnes, while on NMCE, it dropped by 26 tonnes to 2,309 tonnes.

Open interest

The total open interest on NCDEX declined by 64 tonnes to 23,282 tonnes.

June position fell by 385 tonnes to 1,924 tonnes, while July dropped by 535 tonnes to 8,796 tonnes. August went up by 770 tonnes to 9,301 tonnes.

On NMCE, the total open interest moved up by 134 tonnes to 2,501 tonnes. July position increased by 22 tonnes to 1,669 tonnes.

Spot prices

Spot prices remained unchanged on Tuesday at Rs 13,400 (un-garbled) and Rs 14,000 (MG 1).