Kochi: Pepper futures market fell sharply on Wednesday on bearish sentiments and on reported decline in Vietnam prices.
There was not much selling pressure on spot. Big stockists, however, was liquidating their stocks and the exporters were covering to meet their immediate requirement. As India is, at present, the cheapest source for black pepper some business is taking place, market sources told Business Line.
The speculators are pushing up the market unduly. When nearing maturity they don’t take delivery and instead switch over to next positions.
Meanwhile, almost the entire domestic demand is met directly from the primary markets evading tax, they alleged.
Vietnam on Wednesday reduced its prices of FAQ 500 GL to $3,770 a tonne, FAQ 550 GL to $3,970 a tonne (f.o.b.). Double while was being offered at $5,820 a tonne (f.o.b.).
Lampong Asta was being offered at $4,000-4,050 a tonne. Indian parity for March on Wednesday declined to $3,850 a tonne (c&f).
The dip in the Indian parity has created buying opportunity for the overseas buyers, but most of them are still waiting for the prices to decline further.
CONTRACT POSITION
March contract on NCDEX fell by Rs 445 a quintal on Wednesday to close at Rs 14,310. The fall in other contracts was from Rs 258 to Rs 486 a quintal.
On NMCE, March contract dropped by Rs 380 a quintal to Rs 14,180. The drop in other contracts was from Rs 10 to Rs 386 a quintal. Total turnover on NCDEX increased by 5,534 tonnes to 16,493 tonnes, while that on NMCE declined by 44 tonnes to 1,503 tonnes.
Total open interest on NCDEX dropped by 868 tonnes to 21,592 tonnes. March and April positions fell by 16 per cent and 60 per cent respectively while May moved up by 478 tonnes.
On NMCE, total open interest moved up by 228 tonnes to 2,261 tonnse.
Spot prices in tandem with the futures market trend fell by Rs 200 quintal on Wednesday to close at Rs 14,100 (un-garbled) and Rs 14,700 (MG 1).
There was not much selling pressure on spot. Big stockists, however, was liquidating their stocks and the exporters were covering to meet their immediate requirement. As India is, at present, the cheapest source for black pepper some business is taking place, market sources told Business Line.
The speculators are pushing up the market unduly. When nearing maturity they don’t take delivery and instead switch over to next positions.
Meanwhile, almost the entire domestic demand is met directly from the primary markets evading tax, they alleged.
Vietnam on Wednesday reduced its prices of FAQ 500 GL to $3,770 a tonne, FAQ 550 GL to $3,970 a tonne (f.o.b.). Double while was being offered at $5,820 a tonne (f.o.b.).
Lampong Asta was being offered at $4,000-4,050 a tonne. Indian parity for March on Wednesday declined to $3,850 a tonne (c&f).
The dip in the Indian parity has created buying opportunity for the overseas buyers, but most of them are still waiting for the prices to decline further.
CONTRACT POSITION
March contract on NCDEX fell by Rs 445 a quintal on Wednesday to close at Rs 14,310. The fall in other contracts was from Rs 258 to Rs 486 a quintal.
On NMCE, March contract dropped by Rs 380 a quintal to Rs 14,180. The drop in other contracts was from Rs 10 to Rs 386 a quintal. Total turnover on NCDEX increased by 5,534 tonnes to 16,493 tonnes, while that on NMCE declined by 44 tonnes to 1,503 tonnes.
Total open interest on NCDEX dropped by 868 tonnes to 21,592 tonnes. March and April positions fell by 16 per cent and 60 per cent respectively while May moved up by 478 tonnes.
On NMCE, total open interest moved up by 228 tonnes to 2,261 tonnse.
Spot prices in tandem with the futures market trend fell by Rs 200 quintal on Wednesday to close at Rs 14,100 (un-garbled) and Rs 14,700 (MG 1).
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