The Hindu Business Line : Pepper futures market witnesses high volatility

Kochi, Aug 18 The pepper futures market on Monday witnessed high volatility and closed by and large steady. The market has become a ground for the bear and bull operators’ competition, market sources said.

There have been fluctuations without any connection to spot availability. Exporters were unwilling to commit as the coverage from farmers was found to be difficult.

Domestic buyers adopted a wait and watch approach despite good demand, because of the high volatility in the prices. There was no selling pressure.

August contract declined marginally by Rs 12 to Rs 14,160 a quintal, while September and October moved up by Rs 10 and Rs 33 to Rs 14,510 and Rs 14,831 a quintal respectively. The increase in November, December and January was from Rs 42 to Rs 52, while February was down by Rs 25 a quintal.

Total turnover increased by 2,534 tonnes to 8,253 on NCDEX, while total net open position declined by 142 tonnes to 20,678 tonnes. August was down by 525 tonnes while September and October were up by 88 tonnes and 251 tonnes respectively.

Indian parity

Rupee weakened against dollar on Monday. Indian parity continued to remain out-priced at $3,550-3,600 a tonne (c&f). According to reports from Europe, the heavy fluctuations in the Indian futures market do seem to have reflected on the prices of other origins.

B Asta was sold at $3,170 c&f Rotterdam. Vietnam 500 GL was quoted at $2,780-2,800 a tonne (fob); 550 GL at $2950-2970 a tonne (fob) and V Asta at $3,200 a tonne (fob).

There is a feeling in the market that coverage, at present, may be difficult in the coming days given the tight supply position, market observers said.

Spot prices ruled steady at last weekend close of Rs 13,800(un-garbled) and Rs 14,400 (MG 1) a quintal on Monday.

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