Exporters have slowed down their purchase. Also, holidays have affected market sentiments. Three buyers withdraw; $ falls

G.K. Nair

Kochi, April 25

Strengthening of the rupee against the dollar and consequent withdrawal of three major buyers led to a sharp fall in pepper futures prices on Tuesday.

Added to this, unconfirmed reports of a possible revalidation of stocks expiring on May 5, which would come up for delivery next month, also contributed to the decline in future prices, market sources told

Business Line

. "Buyers are worried," they said.

Exporters have also slowed down buying on reports of a strike by port workers and the holidays on April 29, April 30 (Sunday) and May 1. All these factors have negatively affected futures trading, they pointed out.

Besides, the May position is estimated at around 8,300 tonnes, which is also not a healthy sign, they said adding that futures might fall further.

The last trading prices have shown a decline ranging from Rs 143-Rs 180 a quintal from Monday's closing at NCDEX while the drop ranged from Rs 97 - Rs 172 a quintal at the NMCE.

(This article was published in the Business Line print edition dated April 26, 2006)
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