The Hindu Business Line : Upward trend in pepper

All contracts on NCDEX and NMCE moved up by Rs 245 to Rs 431 and Rs 310 to Rs 438 a quintal respectively. Spot prices also in tandem with the futures market trend and short supply shot up by Rs 400 a quintal during the week.

Total turnover on NCDEX dropped by 13,959 tonnes, while on NMCE it fell by 1,781 tonnes

Total open interest on NCDEX during the week fell by 278 tonnes to 25,928 tonnes. July position dropped by 2,002 tonnes to 4,334 tonnes. August position increased by 1,001 tonnes to 14,659 tonnes. On NMCE, total open interest moved up by 42 to 2,819 tonnes. July position declined by 37 tonnes to 1,786 tonnes.

Exporters and domestic dealers were showing buying interest and there was no selling pressure in the primary markets.

In the international market, all the origins were showing firmness smelling a tight supply position. Exports from Vietnam during January–April 2007 were said to be less by 32 per cent over the same period last year. Similarly, shipments from Malaysia also had dropped by 16 per cent during the period.

Besides, the world output projection for 2007 showed a drop of 25-30 per cent over the previous year and as a result other producing countries had quoted higher prices this year so far.

Indian prices, according to market sources, have been moving up on strong fundamentals and not on speculations. The price still remains competitive and hence it is placed at an advantageous position. Certified stocks of an estimated 14,000 tonnes were available with the exchanges, they told Business Line.

The market trend of late has prompted investors, who were keeping away from the market for some time to re-enter and buy.

IPC REPORT

According to the International Pepper Community report for the week, there was an improvement in the domestic market of black pepper in the country. Prices have moved up by around 4-7 per cent compared with last week, as trading at the Commodity Exchange was more active during the week.

In Vietnam, the market also showed some activities and prices were reported to have increased significantly.