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Pepper futures on Thursday declined on bearish activities, despite an increase in the open interest indicating good additional buying.
The propaganda that Vietnam prices eased today has aided the price decline. Meanwhile, the default of some 60 to 70 tonnes of pepper out of the estimated 350 tonnes, came up for delivery and also paved the way for the bearish sentiments.
Non-withdrawal of 4 per cent additional margin even after the prices has dropped below the 20 per cent high of the 90 days average price has affected the credibility, traders alleged.
According to them when the contract is for compulsory delivery, there should not be any default at all, they told Business Line .
“It is against the fundamentals as the market dropped at a time when good additional buying was there on the exchange platform,” they said.
May contract on the NCDEX dropped by Rs163 to close at Rs 28,389 a quintal. June and July fell by Rs 153 abd Rs 225, respectively, to close at Rs 28,944 and Rs 29,364 a quintal.
Total turn over
Total turn over fell by 1,832 tonnes to close at 14,080 tonnes. Total open interest increased by 437 tonnes to 17,489 tonnes.
May open interest moved up by 73 tonnes to 10,488 tonnes, while that of June and July went up by 156 tonnes and 195 tonnes, respectively, to close at 6,030 tonnes and 763 tonnes indicating good additional purchases and yet the market dropped.
Spot prices on thin activities remained unchanged at previous levels of Rs 26,900 (ungarbled) and Rs 27,700 (MG 1) a quintal.
Indian parity in the international market is at $6,700 a tonne (c&f) and remained nearly in line with other origins.
Contrary to the propaganda, a report from Vietnam said the market stopped dropping and the sellers were not ready to offer lower prices.
Prices quoted for 500gl was $5,650/$5,700 a tonne (fob) HCMC and 550gl, $5,950/$6,000. White double washed was offered at $8,300/$8,350 a tonne.
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