Pepper Futures On Decline

Kochi: The pepper futures market continued to decline on Sept 18, on restrictions on nearby month position. The September contract is nearing maturity on NCDEX. But exporters who wanted to purchase could not do so as the quantity restrictions, according to which all the seven deliveries of an exporter put together should not exceed 500 tonnes. The stocks held by exchanges are also on the higher side, which is not a healthy sign. There has been no selling on spot for the past nine weeks. Indian parity is at $3,400-3,450 a tonne (c&f). In the international market, Brazil prices were reportedly firm with marginal fluctuations. Vietnam was reportedly offering VAsta at $3,580 a tonne (f.o.b.), and 500 GL FAQ and FAQ 550 GL at $3,150 and $3,300 a tonne (f.o.b.) respectively.

The September contract on the NCDEX fell by Rs 302 a quintal on Sept 17, to Rs 11,968. The decline in other contracts was from Rs 254 to Rs 463 a quintal. On NMCE, the September contract matured and 76 tonnes of pepper was delivered. The October contract declined by Rs 286 a quintal to Rs 11,960. The drop in other contracts was from Rs 310 to Rs 357 a quintal.Total turnover on the NCDEX dropped by 5,065 tonnes to 13,146 tonnes, while on the NMCE it declined by 405 tonnes to 1,887 tonnes. Total open interest on the NCDEX moved up by 34 tonnes to 23,071 tonnes. On the NMCE, total open interest moved up by 28 tonnes to 1,675 tonnes.