Pepper drops on selling pressures

Our Bureau Kochi | Updated on March 04, 2011


The pepper futures market fell on Friday on some selling pressures and appeared to counter the bullish reports of the day before. Coorg pepper was offered at Rs 225 a kg (with delivery anywhere in India) and some good quantities from Wayanad and Idukki districts were also traded. An estimated 50 tonnes of new pepper from these two districts were traded at the terminal market, market sources told Business Line.

They said that tightening of the borders by the Sales Tax department in Idukki and Wayanad to arrest evasion just before the financial year ends may have compelled the dealers to sell their produce in the terminal market. But good quantities were earlier sent directly from the primary markets to parts of North India since dealers in the primary markets have become good processors/exporters/interstate dealers, they said. As a result, the arrivals remained squeezed at the terminal market in recent months.

Meanwhile, proposed strike call by the staff at offices of the shippers clearing agents and another such call by port workers has also slowed down purchases and aided the price fall today, they said.

March contract on NCDEX dropped by Rs 181 to close at Rs 22,587 a quintal. April and May fell by Rs 156 and Rs 207 respectively to close at Rs 22,923 and Rs 23,161 a quintal.

Total turnover fell by 4,029 tonnes to close at 6,312 tonnes. Total open interest increased by 205 tonnes due to additional purchases, to close at 13,503 tonnes. March open interest declined by 168 tonnes to close at 8,108 tonnes while that of April and May moved up by 345 tonnes and 22 tonnes respectively to close at 4,637 tonnes and 544 tonnes, indicating switching over and additional buying.

Spot prices were in line with the trend in the futures market and dropped by Rs 200 to close at Rs 21,900 (ungarbled) and Rs 22,700 (MG 1) a quintal. In the international market, Indian parity stood at $5,225 - $ 5,250 a tonne (c&f) and remained in line with Indonesia and Brazil, while Vietnam was not showing any interest in selling higher grade pepper as they were not converting the bold pepper into white, which is fetching higher prices, they said.

Published on March 04, 2011

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