Kochi: Pepper futures market on Monday moved up on speculative activities and good buying support following reports of delay in harvesting and consequent decline in supply from Sri Lanka.
All the contracts witnessed substantial increase in prices. The parity has gone up to $3,950-4,000 a tonne. There are no buyers at this rate which is much above the prices of other origins.
Investors were buying actively spot and selling futures. However, they could not buy more because of the quantity restrictions.
Arrivals at the terminal market of the new crop continued to remain thin. However, some quantities are directly going to processor exporters, market sources told Business Line.
The Indian current production is estimated to be between 48,000 and 50,000 tonne. The domestic consumption in 2008 is projected at 55,000 tonne. Domestic demand will pick up in the month of February as the new crop comes in the market and the current winter season, Kodak Commodity Services Limited (KCSL).
WHITE PEPPER
The market for white pepper was unchanged last week. In Bangka, the local price was stable as of the previous week. In Sarawak, local prices were stable, but f.o.b. price eased marginally by 1 per cent.
Meanwhile, in its Pepper Price Outlook 2008, KCSL has said that the fundamental factors are bullish both on the national and international front due to an increased demand and lower stocks. Hence they forecasted an average yearly price of Rs.16,000 per quintal in 2008. Given that “we expect the market to test 18,000-20,000 levels in the future market. We project Q1- Rs 16,300, Q2 Rs 16,000, Q3 Rs 15,800 and Q4 Rs 15,900 for 2008 respectively”, says KCSL Pepper prices outlook for 2008.
CONTRACT POSITION
January contract on NCDEX moved up by Rs 190 a quintal to Rs 14,694. The increase in other contracts was from Rs 204 to Rs 399 a quintal.
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On NMCE, January contract increased by Rs 189 a quintal to Rs 14,400. The rise in other contracts was from Rs 281 to Rs 605 a quintal.
Total turnover on NCDEX increased by 5,768 tonnes to 17,803 tonnes, while on NMCE it went up by 791 tonnes to 2,526 tonnes.
Spot prices also moved up by Rs 100 a quintal in tandem with the futures market trend to close at Rs 13,600 (un-garbled) and Rs 14,400 (MG1) on Monday.
All the contracts witnessed substantial increase in prices. The parity has gone up to $3,950-4,000 a tonne. There are no buyers at this rate which is much above the prices of other origins.
Investors were buying actively spot and selling futures. However, they could not buy more because of the quantity restrictions.
Arrivals at the terminal market of the new crop continued to remain thin. However, some quantities are directly going to processor exporters, market sources told Business Line.
The Indian current production is estimated to be between 48,000 and 50,000 tonne. The domestic consumption in 2008 is projected at 55,000 tonne. Domestic demand will pick up in the month of February as the new crop comes in the market and the current winter season, Kodak Commodity Services Limited (KCSL).
WHITE PEPPER
The market for white pepper was unchanged last week. In Bangka, the local price was stable as of the previous week. In Sarawak, local prices were stable, but f.o.b. price eased marginally by 1 per cent.
Meanwhile, in its Pepper Price Outlook 2008, KCSL has said that the fundamental factors are bullish both on the national and international front due to an increased demand and lower stocks. Hence they forecasted an average yearly price of Rs.16,000 per quintal in 2008. Given that “we expect the market to test 18,000-20,000 levels in the future market. We project Q1- Rs 16,300, Q2 Rs 16,000, Q3 Rs 15,800 and Q4 Rs 15,900 for 2008 respectively”, says KCSL Pepper prices outlook for 2008.
CONTRACT POSITION
January contract on NCDEX moved up by Rs 190 a quintal to Rs 14,694. The increase in other contracts was from Rs 204 to Rs 399 a quintal.
• Check out our Yearender Special
On NMCE, January contract increased by Rs 189 a quintal to Rs 14,400. The rise in other contracts was from Rs 281 to Rs 605 a quintal.
Total turnover on NCDEX increased by 5,768 tonnes to 17,803 tonnes, while on NMCE it went up by 791 tonnes to 2,526 tonnes.
Spot prices also moved up by Rs 100 a quintal in tandem with the futures market trend to close at Rs 13,600 (un-garbled) and Rs 14,400 (MG1) on Monday.
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