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Pepper futures on Tuesday moved up despite having many sellers with good volume of farm grade and validity expired pepper.
There were small, medium and large investors ready to sell farm grade pepper at Rs 10 below the February delivery price, but there were no takers. The reasons attributed to it was the delay in the processing of material delivered, and depositing it back in the exchange warehouse.
“Even the leading exporters who have advanced processing facilities, did not seem to venture in to taking it for running their factories and then depositing back it in the exchange warehouse, despite the fact that ready market was available while sellers were also available at Rs10 below the February price,” market sources told Business Line . “It is indeed surprising,” they said.
It seems that the expert processors, who used to do the processing in the past in such a scenario, were also not taking the material for processing ever since the exchange has tightened the loose ends at its warehouses, they alleged.
The bull operators appeared to have liquidated while some switching over to April also took place.
February contract on NCDEX increased by Rs 361 to close at Rs 25,390 a quintal. March and April went up by Rs 227 and Rs 199, respectively, to close at Rs 24,278 and Rs 24,311 a quintal. Total turn over dropped by Rs 8,439 tonnes to close at 13,746 tonnes. Total open interest also fell by 484 tonnes to close at 17,082 tonnes showing liquidation.
February and March open interest dropped by 324 tonnes and 277 tonnes, respectively, to close at 6,886 tonnes and 8,183 tonnes. April moved up by 103 tonnes to close at 1,618 tonnes, showing a switching over.
Spot prices
Spot prices remained unchanged at previous levels of Rs 22,800 (un-garbled) and Rs 23,600 (MG 1) a quintal on thin activities.
Indian parity in the international market was at $5,575-5,600 a tonne (c&f) and remained slightly above other origins.
According to a report from Vietnam on Tuesday, the market there was a “bit softer due to pressure of pepper coming out less or much.” Prices quoted were 500gl $4,450-$4,550 a tonne and 550gl was very limited due to not much heavy berries at the moment at $4,800. White pepper double washed was quoted at $7,150-7,200 a tonne.
Another overseas report from the US today said, “most origins are just pegging their prices slightly below India's levels. Vietnam has started showing some new crop BP offers.”
Prices quoted for black pepper of different origins in dollar for a tonne c&f New York were MG 1 asta- 5,550-5,600; Lampong asta – 5,500; Brazil B2 500g/l – 4,750-4,800 fob; Brazil B1 550g/l – 4,900-5,000 fob ; Brazil Basta -5 000-5 100 fob; Vietnam 500g/l – 4,650 fob; Vietnam asta – 5,400-5,450; MLV asta – 5,850 ex warehouse New York/New Jersey.
Prices quoted for white pepper in dollar for a tonne c&f were Muntok – 8,000-8,150; Vietnam (double washed) – 7,425-7,450; and Chinese – 7,400.
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