Mixed trend in pepper market

| | Updated on: Apr 19, 2012
image caption

The pepper market showed a mixed trend on Thursday with the April contract dropping while other active contracts moving up.

Those holding speculatively and did not want to take delivery were liquidating and that pushed the April delivery down. April delivery was traded nearly Rs 9.50 a kg below spot prices.

There were no arrivals from the primary markets and at the same time activities on the spot were also limited.

Uncertainty over a decision of the government on its recent announcement that it was contemplating banning of futures trading in some of the commodities, including pepper, has been keeping the weak operators in a panic mode and hence they were liquidating, market sources told Business Line .

April contract on the NCDEX fell by Rs 360 to the last traded price (LTP) of Rs 37,150 a quintal. May and June contracts moved up by Rs 100 and Rs 85 respectively to the LTP of Rs 38,350 and Rs 39,070 a quintal.


Total turnover dropped by 786 tonnes to 3,405 tonnes. Total open interest declined by 113 tonnes to 6,117 tonnes.

April open interest decreased by 239 tonnes to close at 553 tonnes while that of May and June increased by 124 tonnes and 2 tonnes respectively to 5,050 tonnes and 395 tonnes.

Spot prices remained unchanged on limited activities at Rs 36,600 (ungarbled) and Rs38,100 (MG1) a quintal.

Indian parity in the international market was at $7,450 a tonne (c&f) for Europe and $7,750 a tonne (c&f) for the US and is slowly getting competitive with other origins. Weakening of the rupee also aided in bringing the parity closer to other origins, they said.

India imported 1,848 tonnes of pepper in Mar 2012 and has become the third country to import such large quantity after the UAE and Singapore.

Vietnam reportedly exported 18,999 tonnes of pepper in March. According to the trade, some 1,000 tonnes might have gone to the extraction industry while the rest is believed to have gone to the crushing sector.

Overseas trend

Pepper markets, according to an overseas report, were firm in general. Farmers in Vietnam are reportedly holding back pepper and consequently local traders are finding it difficult to make any commitments to overseas buyers as getting offers of physicals from the farmers has become a matter of concern. This situation will coerce buyers into bidding ever higher numbers.

Indonesia is essentially unchanged. Brasil is firmer with increased inquiries from south and central American buyers. White pepper seems firmer from Indonesia but with a dearth of offers, the report added.

Published on November 15, 2017

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you