The Hindu Business Line : Pepper futures up; speculators turn bullish

Kochi June 26 Pepper futures continued its upward move on bullish reports from the US, which has activated the markets in the country and buying support.

Besides, reports of the proposed joint meeting of exporters from Brazil, Vietnam and Indonesia in Jakarta this week have also created some enthusiasm in the speculators who have turned out to be more bullish, market sources told Business Line.

Multinationals, including a Singapore-based investor-company, had shown interest in buying NCDEX delivered pepper at the current rates.

About 50 tonnes of NCDEX delivered were traded on Monday.

This trend indicates that there is a tight supply position world over and more buying interest is expected from the US markets, they claimed.

Spot sellers did not want to part with their produce, as the futures market had been on the upward trend in the recent days.

Difference in the prices of the commodity in both the exchanges has also narrowed down.

Indian parity on Monday was at $3,975-4,050 a tonne (c&f). Vietnam was reportedly offering V Asta at $4,120 a tonne (f.o.b) while 550 GL and 500 GL at $3,525-3,525 a tonne and $3,750 a tonne (f.o.b), respectively.

Lasta was being offered at $3,850-3,950 (f.o.b).

FUTURES UP

July contract on NCDEX moved up by Rs 321 a quintal to Rs 15,110.

The increase in other contracts was from Rs 300 to Rs 416 a quintal.

On NMCE, July contract increased by Rs 403 a quintal to Rs 14,975.

The rise in other contracts was from Rs 375 to Rs 488 a quintal.

Turnover increases

The total turnover on NCDEX increased by 7,984 tonnes to 28,221 tonnes, while on NMCE it moved up by 995 tonnes to 2,302 tonnes.

Open interest down

The total open interest on NCDEX declined by 78 tonnes to 23,855 tonnes while July and Aug positions dropped by 602 tonnes and 47 tonnes respectively to 5,734 tonnes and 13,611 tonnes.

On NMCE, total open interest moved up by 12 tonnes while July position declined by 20 tonnes to 1,803 tonnes.

Spot prices

Spot prices in tandem with the futures market trend and tight supply position shot up by Rs 300 a quintal on Monday to close at Rs 14,100 (un-garbled) and Rs 14,700 (MG 1).

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