Commodities

Pepper buoyant on buying interest

G. K. Nair Kochi | Updated on July 04, 2011

Pepper market on Monday showed some buoyancy in August and September contracts on buying support, while July declined on liquidation.

Market was, as usual, highly volatile. Both the turnover and net open position were on the increase.

Investors were buying back their sales in July. Exporters were buying validity expired stocks at Rs 4-6 a kg below the July price. An estimated 100 tonnes were said to have been traded to different directions.

Some of the exporters said the quality of the material has deteriorated because of the poor storage facilities in the sellers' own warehouses and hence, preferred to buy from the warehouses managed professionally.

Material was available only on the exchange platform as growers and primary market dealers were not interested to sell at the current price levels, trade sources said.

Fresh buying interest in August and September pushed up their prices.

As the Indian parity is competitively placed in the international market, some business has already taken place and some more are likely if the prices remained steady at current levels, market sources told Business Line.

July contract, on the NCDEX, declined by Rs 56 to close at Rs 27,241 a quintal. August and September moved up by Rs 71 and Rs 149, respectively, to close at Rs 27,687 and Rs 27,978 a quintal.

Total turnover increased by 2,726 tonnes to 6,840 tonnes.

Total open interest went up by 844 tonnes to 13,296 tonnes.

July open interest moved up by 156 tonnes while that of August and September increased by 587 tonnes and 97 tonnes, respectively, to 3,911 tonnes and 1,030 tonnes.

Spot prices remained steady on limited activities in the spot at Rs 26,300 (ungarbled) and Rs 27,300 (MG 1) a quintal.

Indian parity in the international market was at $6,400-$6,450 a tonne (c&f) and would have been further cheaper but for the strong rupee against the dollar, they said.

Overseas trend

Vietnam pepper quotes today were FAQ min 500 G/L at $ 5,500- 5,550 (f.o.b) HCMC, FAQ min 550 GL at $5,850-$5,900 and V Asta 570 G/L at $6,250 a tonne.

Vietnam White Double Washed $8,150-$8,200 a tonne (f.o.b).

Published on July 04, 2011

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