Marketfed auction sees sellers demanding higher price
The exporters are worried over the fact that turn over and outstanding positions on the Exchanges are said to be much more than the physical pepper available in their warehouses
Kochi, Sept. 20
Pepper futures market moved up on Wednesday on buying interest from both the domestic and international markets.
Enquiries were floating from overseas buyers in Europe and USA for Indian pepper.
However, they are said to have moved to Vietnam and Brazil due to cheaper prices there. Vietnam offered 550 GL at $3,200 a tonne (c&f) Europe and Brazil at $3,050 (f.o.b) B Asta. Indian parity was at $3,450 a tonne (c&f) Europe.
Even at the auction of Marketfed, the Kerala Government procurement agency, there were more buyers and as a result the seller was demanding a higher price.
On the other hand, the turnover and outstanding positions on the Exchanges are said to be much more than the physical pepper available in their warehouses.
The turn over on NCDEX on Wednesday was at 43,706 tonnes, while on NMCE it was at 8,092 tonnes.
The open interest was at 28,266 tonnes on NCDEX, while on NMCE it was at 5,256 tonnes.
However, the total physical pepper available in the warehouses of both the exchanges as on September 15 was just 9,579 tonnes.
The exporters are, in fact, worried over the situation and hence not in a position to make any commitment as covering later might turn out to be difficult.
It gives the indication that the market is run on highly bullish sentiments and speculative operations.
"Switching over positions are only taking place pushing up the prices," market sources told
The September contract (maturing today) on Wednesday on NCDEX moved up by Rs 512 to close at Rs14,261 a quintal.
As many as 1,128 tonnes of this contract, which matured today, must have been delivered, they said.
The increase in other positions on NCDEX was from Rs 499 to Rs 541 tonnes, while on the NMCE, the October contract moved up by Rs 523 a quintal to Rs 14,702 from Rs 14,179 on Tuesday.
The other positions moved up by Rs 328 to Rs 640 a quintal.
The total turn over on NCDEX dropped by 14,578 tonnes to 43,706 tonnes while on NMCE it fell by 1,598 tonnes to 8,092 tonnes from 9,690 tonnes.
The total open interest on NCDEX was at 28,266 tonnes as against 29,032 tonnes. On NMCE, it was at 5,256 tonnes compared to 5,023 tonnes.
The spot prices also moved up by Rs 200 a quintal to Rs 13,000 (un-garbled) and Rs 13,400 (MG1) on Wednesday.