Correction May Take Place In Pepper Futures

Kochi: A stiff situation in Vietnam has resulted in the pepper market getting overheated and a correction is likely to take place in the near term. The situation, therefore, advises that the investors should wait and watch till the situation changes in Vietnam. During the week, the futures market increased significantly. On NCDEX the increase was from Rs 1,215 to Rs1,431 a quintal, while on NMCE it was from Rs 1,002 to Rs 1,322 a quintal. The total open interest on NCDEX shot up by 3,782 tonnes to 31,704 tonnes, whereas on NMCE it moved up by 354 tonnes to 4,866 tonnes at April 7, close. The spot rates also increased by Rs 1,200 a quintal during the week.
The futures market on April 7, seemingly as a correction, declined. On NCDEX Apr contract down by Rs 70 a quintal to close at Rs 15,230 from Rs 15,300 on Friday. All the contracts except August fell by Rs 3 to Rs 3 a quintal. August increased by Rs 166 a quintal. On NMCE, April moved up by Rs 108 a quintal to close at Rs 14,699 from Rs 14,591. The total turnover on April 7, down by 17,012 tonnes to 44,096 tonnes on NCDEX, while on NMCE it moved up by 627 tonnes to 7,680 tonnes. The total open interest on NCDEX increased by 585 tonnes to 31,704 tonnes. Spot prices ruled firm at previous levels at Rs 13,900 (un-garbled) and Rs 14,500 (MG 1) a quintal at weekend close.

Black pepper rates maintained to be steady but market activities were slower. In Vietnam, the market was rather quiet as farmers were unwilling to sell pepper and prices increased further. In India, the market was quiet, but prices climbed further. At the Commodity Exchange, trading for April contract showed a downtrend. For May - June however, showed an upward trend. At Pangkal Pinang, white pepper rates at local market eased by 3 per cent. At Kuching, local prices were relatively stable, while FOB increased marginally by 1 per cent.