Pepper Futures Decline

Kochi: Pepper futures market after its sharp decline on Sept 1, faced a marginal fall on Sept 3, on pessimistic activities. The futures market, of late, is seeing high volatility with the prices increasing and falling sharply in the exchange resultant from alleged tug of war between the bulls and bears following the introduction of a curb on the nearby month position. The futures market has been giving unrealistic figures with no convergence with spot and the future. Futures fell below the ready market prices. In the international market Vietnam prices for 500 GL increased last Aug 31, from $2,950 to $3,000-3,050 a tonne (f.o.b.), while Brazil Asta was closed at $3,375 a tonne (f.o.b.). September contract on NCDEX fell by Rs 53 a quintal on Sept 3, to Rs 11,965.

On NMCE September contract, however, increased by Rs 130 to Rs 11,949. October increased by Rs 6, while the drop in other contracts was from Rs 88 to Rs 415 a quintal. The total turnover on NCDEX declined by 4,255 tonnes to 23,442 tonnes, while the fall in September and October was by 10 per cent and 80 per cent respectively. On NMCE total turnover fell by 73 tonnes to 3,066 tonnes. The total open interest on NCDEX increased by 62 tonnes to 23,291 tonnes. September and October positions dropped by 28 per cent and 46 per cent. On NMCE the total open interest increased by 333 tonnes to 2,556 tonnes. September and October increased by 86 tonnes and 248 tonnes.