Thursday, October 16, 2008

Pepper Futures Market Continued Down Trend - Oct 16, 2008

Kochi: Pepper futures market continued its down trend on selling pressure and under the influence of the decline in the stock markets. October contract declined by Rs 210 a quintal to Rs 12,650. November and December declined by Rs 262 and Rs 252 a quintal to Rs 12,679 and Rs 12,825 respectively. Total turnover on NCDEX went up by 1,874 tonnes to 7,890 tonnes. Total open interest fell by 270 tonnes to 16,995 tonnes. Liquidity crunch following the current economic turmoil world over has drove the investors, who have no connection with the commodities markets and had made investments in it, are selling spot the stocks held by them in warehouses at October price.

Add to this the rupee is weak. The fall in futures price coupled with a weak rupee has eased the Indian parity to $2,900-3,000 a tonne (c&f). In the global scenario, everybody is now looking at Brazil. On Oct 15 sellers were quoting $2,600-2,650 at tonne (f.o.b) for B1 560 GL.

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