The Hindu Business Line : Bears pull down pepper futures

Kochi, Oct 3 Pepper futures market fell sharply on Friday on bearish activities. October contract dropped by Rs 217 to Rs 13,820 a quintal below the spot price for MG 1. Similarly, November also dropped by Rs 222 a quintal to Rs 13,850, below the spot price. December declined by Rs 203 to Rs 14,084 a quintal.

“The market is in the hands of market manipulators and speculative operators who are pulling it down without any reason so as to drive the buyers away, trading sources alleged. Exporters won’t come forward to cover. It is sending our wrong signals. Vietnam is reportedly following closely the futures market in India, they said. The market has witnessed high volatility. No body is ready to risk to hedge on apprehensions about the delivery because of the technical anomaly, which the regulator should look into,” Mr Kishor Shamji, President, IPSTA, told Business Line.

TURNOVER SLIPS

Around 100 per cent turnover is in first three deliveries. Similarly, 93 per cent of the open interest is also in the first three deliveries. Total turnover on NCDEX fell by 3,418 tonnes to 6,660 tonnes. Total open interest moved up by 140 tonnes to 18,133 tonnes. Open interest for October fell by 279 tonnes to 6,167 tonnes, while November and December moved up by 226 tonnes and 191 tonnes respectively to 7,942 tonnes and 2,792 tonnes. The fall in the futures market coupled with weakening of the rupee against dollar brought down the Indian parity to $3,200 a tonne (c&f) for Europe and $3,300 a tonne for the US.

GLOBAL MARKETS

Spot prices remained unchanged at Rs 13,300 (un-garbled) and Rs 13,900(MG 1) on Friday. In the international market, Vietnam, following what is happening on the Indian futures market, was reportedly steady at $2,600-2,650 a tonne (f.o.b) for 500 GL FAQ and 550 GL at $2,780 a tonne (f.o.b). White pepper (double wash) was quoted at $4,100 a tonne. Brazil was quoting B1 at $2,750-2,800 a tonne (f.o.b).

Meanwhile, an overseas report that Vietnam farmers might sell pepper so as to “prepare for the new coffee crop”.

The markets were comparatively active so far this week with business taking place for various grades of black pepper.

According to another overseas report, Brazil was choosing to abstain from offering while Vietnam was looking for higher prices, like $2,750 a tonne (f.o.b) for 500 GL Faq.

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