Pepper Future Witnesses Sharp Decline

Kochi: Pepper futures saw a sharp decline on April 17, following reports of selling pressure building up in Vietnam and consequent drop in prices. The NCDEX decision not to sanction any exemption on margin also contributed to the fall as many operators were liquidating. However, NMCE will reportedly grant exemption to eligible parties. Vietnam is said to have quoted FAQ 500 GL at $3,050 a tonne (f.o.b) while 550 GL was at $3,200 and V ASTA at $3,600 a tonne (f.o.b). Brazil G2 500 GL was being offered at $3,100 a tonne (f.o.b) and G1 560 GL at $3,200 and B Asta at $3,300 a tonne (f.o.b).
On April 17, April contract on NCDEX fell by Rs 705 a quintal to Rs 14,790. On NMCE, April contract down by Rs 731 a quintal to Rs 14,567. The decline in other contracts was from Rs 144 to Rs 638 a quintal. The total turnover increased by 16,381 tonnes on April 17, to 55,702 tonnes on NCDEX, while on NMCE it declined by 948 tonnes to 6,826 tonnes. The total open interest on NCDEX went up by 1,707 tonnes to 35,558 tonnes. April 17, position was down by 188 tonnes to 1,076 tonnes. May and June increased by 1,540 tonnes and 269 tonnes respectively to 19,132 tonnes and 10,395 tonnes. On NMCE, total open interest moved up by 26 tonnes to 4,333 tonnes.