The Hindu Business Line : Buying support helps pepper futures recover

Kochi, Oct. 3 Indian pepper future bounced back on Wednesday after continuous decline for several days on good buying support and squeeze in physical availability.

Besides, reports of low crop in Brazil than what had been expected and decline in arrivals and consequent slow down in offerings have also contributed to the upward swing. Brazil, which was offering at low prices, is reportedly in a mood to push up the prices.

Apart from Brazil only India was offering at low prices as market manipulators were pushing down the prices here. However, this has helped the exporters to cover at lower levels.

All other origins were holding firm. Slowdown in Brazil seems to have compelled the European operators who were thinking to buy from there before the Christmas have turned towards India and it has resulted in short covering coming to the country. This has also activated the futures market to take corrective measures.

On the other hand, the current crop in Karnataka’s Kodagu (Madikeri) region is likely to drop following incessant rains in September for over three weeks. It is expected to delay the crop. These factors also appear to have influenced the market. Therefore, the current upward move in the prices could be viewed as a correction rather than a bull run, market sources told Business Line.

Gain in Turnover

October contract on NCDEX shot up on Wednesday by Rs 474 to Rs 12,323. The increase in other contracts was from Rs 369 to Rs 604 a quintal.

On NMCE, October contract increased by Rs 538 a quintal to Rs 12,355. The rise in other contracts was from Rs 276 to Rs 598 a quintal.

Turnover

Total turnover on NCDEX increased by 5,063 tonnes to 15,684 tonnes, while that for October and November went up by 15 and 70 per cent respectively.

On NMCE, total turnover moved up by 791 tonnes to 1,445 tonnes.

Total open interest on NCDEX dropped by 658 tonnes to 19,341 tonnes. October and November position dropped by 36 per cent and 38 per cent respectively.

Open interest

On NMCE, total open interest moved up by 99 tonnes to 2,013 tonnes, while that for October was up by 33 tonnes to 1,046 tonnes.

Spot prices

Spot prices in tandem with the futures market trend increased by Rs 100 a quintal on Wednesday to close at Rs 11,800 (un-garbled) and Rs 12,400 (MG 1).

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