The pepper market on Friday showed mixed trend. July, which matured today, moved up substantially while the other two actives declined marginally.
There was good buying support as is evident from the open interest which increased significantly. Negligible quantity was there in July and that went for delivery.
There were reports that some Indian importers have bought Brazil pepper B1 550-560 GL at $6,300 a tonne. Vietnamese also said to have bought it as the skin of this pepper is very thin and hence easy for processing into white pepper.
Indians imports might be either for converting it into white or for selling on the domestic market as there could be a difference of around Rs 30 a kg between the landed cost and the Indian domestic market price, trade sources claimed.
In July contract, only 28 tonnes were there for delivery as good quantity had gone under staggered delivery and direct settlement between parties because of the cumbersome procedures, market sources told Business Line.
July contract on the NCDEX increased by Rs 385 a quintal to the last traded price (LTP) of Rs 43,195 a quintal. August and September decreased by Rs 55 and Rs 75 respectively to the LTP of Rs 43,330 and Rs 43,605 a quintal.
Total turnover increased by 891 tonnes to 3,753 tonnes indicating good activities.
Total open interest went up by 248 tonnes to 6,282 tonnes showing good additional buying.
July contract matured today and 28 tonnes of pepper were marked for delivery.
Spot prices remained unchanged at previous levels of Rs 40,100 (ungarbled) and 41,600 (MG 1) a quintal.
Indian parity on the international market was at $7,900 - 8,000 a tonne (c&f) for Europe and $8,200-$8,300 a tonne for the USA.
Given this scenario imports from other origins which are ruling below MG 1 cannot be ruled out under cover of shortage here, traders alleged.
“Even, those importing for value addition and re-export might also be tempted by the high domestic price and may push some quantity into the domestic market”, they said.
In the international market Lampung ASTA today was down to $6350 a tonne fob nett to shippers, an overseas report said.
Keywords: pepper market,