Mixed trend in pepper

Pepper futures witnessed mixed trend on Thursday with the February contract declining while March and April moved up.

Sellers without valid stocks were influenced to switch over.

Meanwhile, on the spot, all pepper was collected at farm gate by “expert processors” who processed it into MG 1 and deposited in the “selected warehouses”. As a result, 225 tonnes of pepper were deposited in Kochi and 20 tonnes in Kozhikode. Thus, the total volume available for delivery would come to 2,656 tonnes, market sources told Business Line. This is pointed out as one of the reasons for the February delivery to fall. Given this scenario, there was no physical pepper available at the primary markets and that in turn pushed up the spot prices up, they said.

Heavy liquidation

There was heavy liquidation and some switching over to March and April. There has not been significant improvement in arrivals of new crop in India. Similarly, in Vietnam too, it has not picked up so far as anticipated, they said.

February contract on the NCDEX dropped by Rs165 a quintal to close at Rs 24,210 while March and April moved up by Rs 379 and Rs 354 respectively to close at Rs 23,874 and Rs 23,925 a quintal.

Total turnover increased by 2,880 tonnes to close at 17,612 tonnes.

Total open interest dropped by 996 tonnes to close at 15,813 tonnes showing heavy liquidation.

February open interest fell by 1,390 tonnes to 4,282 tonnes. March and April moved up by 215 tonnes and 169 tonnes to close at 9,092 tonnes and 1,997 tonnes. That means 384 tonnes were switched over while over 1000 tonnes were liquidated, they said.

In the international market, the overseas buyers wanted to buy but they are confused and the market remained unclear, they said.

Indian parity was at $5,500 a tonne (c&f) Europe and $5,600 a tonne (c&f) USA.

Overseas reports

A report from Vietnam today said the market there was easier. 500 GL and 550 GL were quoted at $4,350 and $4,650 a tonne respectively (f.o.b.)

White pepper (double washed) was offered at $7,100 a tonne for US market and $7,050 a tonne for others. Vietnam Asta was quoted at $5,000 a tonne.

B Asta was indicated at $ 5,075 a tonne (fob) and B1 at $4,975 a tonne (fob) for April/May shipments.

Another report from the US said B Asta appeared to be the most competitive origin at present willing to entertain bids.

Black pepper

Prices quoted for black pepper of different origins per tonne in dollars c&f New York were : MG 1 asta – 5,550-5,600; Lampong asta – 5,475-5,575; Brazil B2 500g/l – 4,800 fob; Brazil B1 550g/l – 4,900 fob; Brazil B asta -5,000-5,100 fob (reportedly $4850-$4900 fob recently traded); Vietnam 500g/l – 4,650 fob;Vietnam asta – 5,400-5,450; MLV asta – 5,850 ex warehouse New York / New Jersey.

White pepper prices quoted per tonne in dollar c&f were Muntok – 8,250-8,300; Vietnam (double washed) – 7,450 – 7,500 ; and Chinese 7,400 – 7,450.