Kochi: The pepper futures market on Friday fell sharply consequent to the drop in the stock markets.
The decline was so high that almost all the contracts touched the 2nd circuit breaker. “Liquidity crunch following the fall in the stock market” is pointed out as main reason, according to trading sources. Besides, rumours were being spread that the Vietnam prices had declined.
Demand for money because of the financial year end has created a selling pressure. But, there were no buyers. Investors had been supplied with around 400 tonne of the material by selected processors and that have been delivered at selected warehouses, market sources told Business Line.
According to them March goods expiring in May/June has come for delivery but buyers are not forthcoming to buy despite being offered at low prices for fear on the quality of the materials.
Stock position in CWC’s designated warehouses in Kerala was at 2,137 tonne. Meanwhile, according to NCDEX the stock position in its accredited warehouses as on March 6 stood at 4,729 tonne and the stock in processing was 310 tonne.
Meanwhile, according to overseas reports, Vietnam farmers were offering at higher levels while speculators were trying to lower their prices. Vietnam Asta grade remained out-priced at $4,400 a tonne (f.o.b.).
In Indonesia L Asta was being offered at $4,100-4,150 a tonne for March, April and June, July shipments. However, Brazil was offering B Asta at $3,900-3,950 a tonne (f.o.b.). Sellers there were not offering below $3,700 a tonne (f.o.b.) 500 GL and $3,850 a tonne (f.o.b.) 560 GL.
Indian parity on Friday dropped to $3,950-4,000 a tonne (c&f).
Contract Position
March contract on NCDEX on Friday fell by Rs 613 a quintal to close at Rs 14,723. The fall in other contracts was from Rs 492 to Rs 687 a quintal.
On NMCE March contract dropped by Rs 500 a quintal to close at Rs 14,402 from Rs 14,902. The drop in other contracts was from Rs 390 to Rs 620 a quintal.
Total turn over on NCDEX moved up by 1,378 tonne to 14,764 tonne while that on NMCE increased by 423 tonne to 1,748 tonne.
On NMCE total open interest moved up by 83 tonne to 1,794 tonne.
Spot prices in tandem with the futures market trend and selling pressure fell by Rs 200 a quintal to close at Rs 14,200 (un-garbled) and Rs 14,800 (MG 1) on Friday.
The decline was so high that almost all the contracts touched the 2nd circuit breaker. “Liquidity crunch following the fall in the stock market” is pointed out as main reason, according to trading sources. Besides, rumours were being spread that the Vietnam prices had declined.
Demand for money because of the financial year end has created a selling pressure. But, there were no buyers. Investors had been supplied with around 400 tonne of the material by selected processors and that have been delivered at selected warehouses, market sources told Business Line.
According to them March goods expiring in May/June has come for delivery but buyers are not forthcoming to buy despite being offered at low prices for fear on the quality of the materials.
Stock position in CWC’s designated warehouses in Kerala was at 2,137 tonne. Meanwhile, according to NCDEX the stock position in its accredited warehouses as on March 6 stood at 4,729 tonne and the stock in processing was 310 tonne.
Meanwhile, according to overseas reports, Vietnam farmers were offering at higher levels while speculators were trying to lower their prices. Vietnam Asta grade remained out-priced at $4,400 a tonne (f.o.b.).
In Indonesia L Asta was being offered at $4,100-4,150 a tonne for March, April and June, July shipments. However, Brazil was offering B Asta at $3,900-3,950 a tonne (f.o.b.). Sellers there were not offering below $3,700 a tonne (f.o.b.) 500 GL and $3,850 a tonne (f.o.b.) 560 GL.
Indian parity on Friday dropped to $3,950-4,000 a tonne (c&f).
Contract Position
March contract on NCDEX on Friday fell by Rs 613 a quintal to close at Rs 14,723. The fall in other contracts was from Rs 492 to Rs 687 a quintal.
On NMCE March contract dropped by Rs 500 a quintal to close at Rs 14,402 from Rs 14,902. The drop in other contracts was from Rs 390 to Rs 620 a quintal.
Total turn over on NCDEX moved up by 1,378 tonne to 14,764 tonne while that on NMCE increased by 423 tonne to 1,748 tonne.
On NMCE total open interest moved up by 83 tonne to 1,794 tonne.
Spot prices in tandem with the futures market trend and selling pressure fell by Rs 200 a quintal to close at Rs 14,200 (un-garbled) and Rs 14,800 (MG 1) on Friday.
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