Pepper Futures Improve

Kochi: Pepper futures increased on May 2, on tight supply position in Vietnam and consequent sharp rise in prices there. Vietnam was offering FAQ 500 GL at $3,900 (f.o.b.) while 550 GL at $4,000 and 570 GL at $4,350 a tonne (f.o.b.). In tandem with this trend Indonesia was quoting Lampung Asta at $4,135 a tonne (c&f). Meanwhile, Vietnam exporters are said to have defaulted March/April shipments saying that the material was not available. Overseas purchasers are upset now after waiting for long for the prices to decline and using their pipeline stock, which is also said to have exhausted. White pepper rates have also increased in the international market. China was offering at $5,150 a tonne (c&f), while Indonesia at $4,950 - $5,000 a tonne (c&f).
May contract on NCDEX increased by Rs 671 a quintal to close on Wednesday at Rs 15,940 from Rs 15,269 on April 1. On NMCE, May contract increased by Rs 708 a quintal to close at Rs 15,420 from Rs 14,712. Spot prices also shot up by Rs 500 a quintal on April 2, to close at Rs 14,500 (un-garbled) and Rs 15,100 (MG 1). The total turnover on NCDEX increased by 21,528 tonnes to 54,846 tonnes while on NMCE, it moved up by 1,239 tonnes to 4,591 tonnes. The total open interest on NCDEX shot up by 200 tonnes to 29,109 tonnes. May position declined by 1,023 tonnes to 8,020 tonnes. June and July positions have increased by 743 tonnes and 320 tonnes respectively to 14,308 tonnes and 3,104 tonnes.