Pepper Future Sees High Fluctuation

Kochi: Pepper futures witnessed high variations last week and fell. A sharp fall was seen in the turnover on NCDEX and NMCE. On NCDEX, it fell by 77,206 tonnes to 1,41,349 tonnes, while on NMCE, it declined by 6,621 tonnes to 13,198 tonnes. Total open interest moved up by 1,465 tonnes on NCDEX to 26,943 tonnes. June position down by 1,847 tonnes to 10,215 tonnes, while July and August increased by 1,347 tonnes and 1,819 tonnes respectively to 10,542 tonnes and 4,275 tonnes. Spot prices declined by Rs 100 a quintal to Rs 13,700 (un-garbled) and Rs 14,300 (MG 1) at Saturday close. The downward trend in the futures market in India is closely watched by Brazil and Vietnam. If the revised quantity restriction is enforced the investing community might get out of the trade.
According to International Pepper Community (IPC) report for the week ended June 1, the world pepper market was quiet. Prices at most origins fell slightly with limited activity. At Kochi, the price of un-garbled black pepper declined to Rs 13,700 a quintal from Rs 14,300 at the last week's close. At Kuching, local prices reduced further from 10,300 Malaysian ringgit (MYR) a tonne to MYR 10,170. In Lampung, the market continued to be very quiet and local prices delined by around 4 per cent.