Bears Pause, Help Pepper Futures Gain

Kochi: Pepper futures market after continuous decline on bearish activities moved up on Tuesday.

Market has been witnessing high volatility due to alleged concerted efforts to push down the prices, market sources told Business Line. They said those who were having commitments alleged to have resorted to bearish activities to depress the market. Operators having commitments covered at lower levels.

The Kerala State Cooperative Marketing Federation, Marketfed, has sold 50 tonnes from the stock it is holding at Rs 133 a kg. Besides, some farmers looking at the declining trend in the futures market were selling at the current levels fearing further fall in the prices.

Add to this, there were allegations that part of the pepper imported from Brazil at $3,250-3,350 a tonne was being sieved and the bold berries were sold as Wayanad pepper at the current market prices.

In the international market, Indian pepper remained out priced at $3,775-3,800 a tonne (c&f). Other origins were ruling below the Indian parity. Given this scenario no demand was forthcoming from overseas, they said.

Vietnam keeping in tandem with the Indian prices was reportedly offering V Asta at $3,800 a tonne (f.o.b.) while 570 GL at $3,470 a tonne (f.o.b.) and 550 GL at $3,390 a tonne (f.o.b.).

L Asta was said to be at $3,600-3,700 a tonne (c&f). B Asta was being offered at $3,425 a tonne (f.o.b.).

Contract position

November contract moved up by Rs 207 a quintal on Tuesday to Rs 14,150. All other contracts except April increased by Rs 72 to Rs 262 a quintal. April contract dropped by Rs 209 a quintal to Rs 15,102.

On NMCE, November contract went up by Rs 71 a quintal to Rs 14,176.

The increase in all other contracts except February and March was Rs 220 a quintal, while February and March declined by Rs 280 and Rs 100 a quintal respectively.

Total turnover on NCDEX shot up by 13,282 tonnes to 32,010 tonnes, while that for November and December increased by 6 per cent and 83 per cent respectively. January turn over was also up by 8 per cent.

On NMCE, total turnover on Tuesday increased by 1,083 tonnes to 3,423 tonnes.

Total open interest on NCDEX on Tuesday dropped by 830 tonnes to 20,467 tonnes. November and December positions declined by 14 per cent and 60 per cent respectively while January position was up by 16 per cent.

On NMCE, total open interest declined by 50 tonnes to 2,052 tonnes.

Spot prices remained steady at previous levels at Rs13,500 (un-garbled) and Rs14,100 (MG 1) a quintal on Tuesday.