The Hindu Business Line : Pepper futures drop on selling pressure

Liquidity crunch was also pointed out as the reason for the fall. There were strong rumours in the air during early trading that the Regulator would withdraw the quantity restrictions on nearby month positions on Monday and that has encouraged buying. However, as nothing of the sort has emanated till late afternoon, those who bought were selling it back creating pressure contributing to the decline in the prices, market sources told Business Line.

Some of the exporters were covering small lots to meet their earlier commitments, they said. Domestic demand was steady.

Arrivals continued to remain at almost half of the volume used to come during these days in the harvesting season.

International market was by and large quiet. Indian parity is at $3,825 a tonne (c&f). Indonesia was offering L Asta at $3,700 a tonne (f.o.b.). Brazil was quoting $3,600 a tonne (f.o.b.) for B Asta and $3,550 a tonne (f.o.b.) for B 1 last Friday.

CONTRACT POSITION

February contract on NCDEX on Monday dropped by Rs 230 a quintal to t Rs 14,265. The fall in other contracts was from Rs 132 to Rs 266 a quintal. On NMCE, February contract fell by Rs 215 a quintal to Rs 13,980. The drop in other contracts was from Rs 152 to Rs 307 a quintal.

Spot prices in tandem with the futures market trend dropped by Rs 100 a quintal to close at Rs 13,500 (un-garbled) and Rs 14,100 (MG 1).

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