The Hindu Business Line : Bears pull down pepper futures

Indian parity was at $3,900-3,950 a tonne (c&f) and continued to remain most competitive in the world market at present with chances of more demand coming for heavy pepper (MG 1) coming to India. There was no selling pressure on spot.

Exporters on getting some business were covering exchange delivered pepper where it is available in plenty at prices below the spot, market sources told Business Line. Because of the ensuing holidays and the squeeze in availability in the primary markets, exporters were committing only for the quantity available at the exchange, they said.

The market has been highly speculative and, as a result, there high fluctuation in the prices. Vietnam is said to be closely monitoring the trend in the futures market in India, they said.

In the international market was said to be passing through uncertainty as the farmers were firm on their stand without making much offers. Besides, trading between alternative markets was taking place.

All other origins were firm at higher levels. Indonesia was offering L Asta at over $4,100 a tonne while Vietnam Asta was quoted at above $4,300 a tonne. B Asta was being offered at $3,950 a tonne (f.o.b.) Belem. B1 at $3,800 and B2 at $3,720 a tonne (f.o.b.) respectively.

Vietnam white pepper was quoted at $6,180 a tonne.

CONTRACT POSITION

March contract on NCDEX on Tuesday dropped by Rs 112 a quintal on Tuesday to close at Rs 14,675. The fall in other contracts was from Rs 45 to Rs 140 a quintal.

On NMCE April contract fell by Rs 109 a quintal to close at Rs 14,975 from Rs 15,084. The fall in other contracts except June was from Rs 69 to Rs 119 a quintal while June moved up by Rs 12 a quintal.

Total turn over on NCDEX moved up by 677 tonne to close at 13,202 tonne while on NMCE it went up by 203 tonne to 1,799 tonne. Total open interest on NCDEX dropped by 459 tonne to 19,819 tonne. March and April positions declined by 9 per cent and 59 per cent respectively while May moved up by 26 per cent.

Spot prices ruled steady at Monday’s closing levels at Rs 14,300 (un-garbled) and Rs 14,900 (MG 1) a quintal.