Pepper Future Witnesses Down Trend

Kochi: Pepper futures remained its downward trend on pessimistic activities and reports that Vietnam was weaker. Vietnam was reportedly offering 500 GL at $3,475-$3,500 a tonne (fob). However, India does not have lower grade pepper and there is good domestic demand for MG 1 at higher rates. They said that there were purchasers for NCDEX delivered pepper at Rs 15,300-Rs 15,375 a quintal on July 5 and 50 tonnes of it is said to have been traded. Besides, exporters and investors were showing interest to buy spot farm grade pepper at Rs 14,400-Rs 14,800 a quintal and about 125 tonnes were reportedly traded. Asta grade pepper at all other origins were firm at higher levels and hence the Indian produce is still very competitive.
Indian exports during January-May (2007 season) was at 10,700 tonnes as against 7,800 tonnes in the same period last year and 5,100 tonnes in 2005. July contract on NCDEX fell by Rs 92 a quintal on July 5, to close at Rs 15,035 from Rs 15,127 on July 4. The drop in other contracts was from Rs 109 to Rs 145 a quintal. The fall in other contracts was from Rs 44 to Rs 87 a quintal. The total turnover on NCDEX increased by 1,664 tonnes to 14,358 tonnes while on NMCE it fell by 140 tonnes to 1,079 tonnes. The total open interest on NCDEX increased by 83 tonnes to 24,695 tonnes while July position declined by 85 tonnes to 3,739 tonnes. August position increased by 123 tonnes to 15,049 tonnes while September moved up by 25 tonnes to 3,243 tonnes. On NMCE, the total open interest increased by 90 tonnes to 2,745 tonnes while July declined by 77 tonnes to 1,540 tonnes.