Pepper Futures Decline On Bearish Activities

Kochi: Pepper futures market after going up on Monday dropped on Tuesday on bearish activities.

The market witnessed high volatility due to speculative operations by both the bulls and bears, market sources told Business Line. Besides, those who have commitments made earlier are trying to push down the prices. The increased intra-trade activities are allegedly responsible for the high volatility in the market.

The international market was reportedly quiet on Tuesday as the US market was partially closed on account of Veteran’s Day. Vietnam was slightly weaker. Five hundred GL was offered at $3,160-$3,170 a tonne (f.o.b) while 550 GL at $3,350 and 570 GL at $3,420 a tonne (f.o.b). B Asta was being offered at $3,325-$3,350 a tonne (f.o.b).

CONTRACT POSITION

November contract on NCDEX fell by Rs 210 a quintal on Tuesday to Rs 13,880. The fall in other contracts was from Rs 17 to Rs 361 a quintal.

On NMCE, November contract moved up by Rs 150 a quintal to Rs 13,950. The other contracts fell by Rs 95 to Rs 258 a quintal.

Total turnover on NCDEX moved up by 1,863 tonnes to 20,922 tonnes while that for November, December and January increased by 4 per cent, 82 per cent and 10 per cent respectively.

On NMCE, total turnover went up by 561 tonnes to 2,545 tonnes. Total open interest on NCDEX increased by 311 tonnes to 21,129 tonnes. The November position dropped by 10 per cent, while December and January moved up by 57 per cent and 21 per cent, respectively.

Spot prices

On NMCE total open interest went up by 82 tonnes to 2,101 tonnes. Spot prices in tandem with the futures market trend dropped by Rs 100 a quintal to close at Rs 13,400 (un-garbled) and Rs 14,000 (MG 1) on Tuesday.

Meanwhile, according to Sharekhan Commodities Pvt Limited “now on daily charts pepper was consolidating in the narrow range and has formed triangle pattern. In Monday’s trade, pepper has given breakout of this consolidation and now should at least retrace 61.8 per cent of recent fall and should test Rs14,800 in short term”.