Comments
The pepper market on Wednesday dropped on bearish sentiments despite positive trend in opening interest.
The trade said it is going against market fundamentals. International players and Indian bear operators were trying had to push the market down, trade alleged.
There is fear that those who buy now will liquidate and the market may drop. The stocks received by investors are still lying in the exchange platform, market sources told Business Line .
No selling pressure
There was no selling pressure. Some 15 tonnes of pepper arrived and that was traded at Rs 388-390 and Rs 392 a kg depending on the quality, grade and area of production.
In Karnataka also there is reportedly shortage of material and hence the prices there also have increased. Kodagu pepper was being offered at Rs 390 - 395 levels on cash and carry basis, they said. Domestic dealers have turned to Wayanad and the material is being taken via Gudalur, they said.
July contract on NCDEX dropped by Rs 225 a quintal to the last traded price (LTP) of Rs 41,010 a quintal. August slipped by Rs 30 to the LTP of Rs 41,525 a quintal while September increased by Rs 200 to the LTP of Rs 41,800 a quintal.
Turnover
Total turnover dropped by 178 tonnes to 1,683 tonnes. Total open interest increased by 154 tonnes to 5,235 tonnes.
July, August and September open interest increased by 74 tonnes, 76 tonnes and 4 tonnes respectively to 3,257 tonnes, 1,889 tonnes and 82 tonnes.
Spot prices remained steady at the previous levels in matching demand and supply situation at Rs 38,800 (ungarbled) and Rs 40,300 (Garbled) a quintal.
Indian parity in the international market remained at around $7,450 a tonne (c&f) for the Europe and about $7,750 a tonne (c&f) for the US.
Overseas trend
International markets were stable at present, according to an overseas report today. Vietnam farmers are said to be holding back and there has emerged a view now that “Vietnam crop may not be as high as the figures of 140 K which came earlier.”
Exporters from Vietnam have not been able to cover as much quantity as required. However, the demand side has been slow, the report said.
Another report said today that both Brazil as well as Vietnam were reluctant and unwilling to adjust (decrease) their prices.
At the same time, buyers are reportedly “becoming somewhat impatient and more or less being forced to pay sellers levels.”
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.