Pepper futures decline

G. K. Nair Kochi | Updated on January 13, 2011

Pepper futures continued its declining trend, albeit marginal, on liquidation and bearish sentiments. There was no selling pressure on the spot and futures market. However, because of high volatility and a ‘tug of war' between the bulls and bears, small and medium players burnt their fingers and have moved away from the market.

Everybody is on a wait-and-watch mode hoping new pepper would arrive and prices will fall. But arrivals continued to be limited. However, some 10 tonnes of new pepper was sold from Pathanamthitta district today.

Meanwhile, there seems to be lingering fear among market players that the Centre might ban futures trading in commodities owing to the steep rise in food prices. This, according to market sources, is slowing down the trade.

January contract on NCDEX declined by Rs 68 to close at Rs 22,432 a quintal. February and March contracts were down by Rs 116 and Rs 136, respectively, to close at Rs 22,871 and Rs 23,139 a quintal.

Turnover down

Total turnover fell by 4,137 tonnes to close at 7,426 tonnes. Total open interest declined by 177 tonnes to close at 12,669 tonnes, showing some liquidation.

January open interest fell by 624 tonnes to 3,869 tonnes while February and March moved up by 399 tonnes and 35 tonnes, respectively, to 7,769 tonnes and 650 tonnes showing switching over and liquidation, they said.

Spot prices remained unchanged at previous levels on matching demand and supply situation at Rs 21,400 (un-garbled) and Rs 22,200 (MG1) a quintal.

Indian parity in the international market remained at $5,225-5,250 a tonne (c&f) and was nearly competitive with other origins.

Overseas trend

A report from Vietnam today said its white pepper quoted at around $6,900 a tonne (fob) while black faq 500 g/l indicated $4,450 (fob), faq 550 g/l $4,700 (fob) HCMC. Brasil B1 560 G/L quoted at $4,900 (fob) and B Asta at $5,000 a tonne. Muntok white pepper faq spiral cleaned was quoted at $7,300 (fob).

According to an overseas report from the US, Indonesia had shown interest to consider bids on L Asta below their prevailing market prices from selected repeat buyers. However, other origins were more or less unchanged.

Prices quoted for black pepper of different origins in dollar per tonne (c&f) New York were: MG 1 asta 5,300-5,400; Malabar faq 500g/l — 5,000 fob; Lampong asta — 5,000-5,250; Brazil B2 500g/l — 4,800 fob; Brazil B1 550g/l — 4,950 fob; Brazil B asta — ask for offer; and Vietnam asta — 5,250.

White pepper prices, quoted per tonne in dollar c&f, were: Muntok — 7,525-7,550; and Vietnam (double washed) — 7,300.

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Published on January 13, 2011
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