Pepper Futures Ended On Positive Note Due To Good Buying Support - Dec 01, 2008

Pepper futures market saw high volatility during the week with the prices falling sharply on selling pressure and bearish activities and then recovering during the weekend on good buying support. The inherent strength of the Indian pepper viz., a strong domestic market, is appears to be playing its vital role to keep the pepper prices up even as the western markets are in the grip of severe credit squeeze consequent to the global economic recession on the one hand and the spreading of market depressing reports from overseas of increased availability in Indonesia on the other. All contracts on NCDEX dropped by Rs 462 to Rs 697 a quintal and on NMCE it was from Rs 499 to Rs 580 a quintal. Total turn over dropped by 9,202 tonnes to 23,476 tonnes. Total open interest during the week declined, by 970 tonnes, to 10,600 tonnes.

Spot prices, also in tandem with the futures market trend, fell by Rs 300 a quintal to close at Rs 11,000 (un-garbled) and Rs 11,500 (MG 1) on Saturday last. The recovery of the market at the weekend implies that the fundamentals continued to remain strong, market sources told Business Line. Indonesians are said to have admitted that the figures given by them at the International Pepper Community meeting held in the Vietnamese Capital during November 24 -27 were wrong. Black pepper availability, currently is understood to be in India and Brazil till the new Vietnamese crop hits the world market in late March-early April 2009. During the week the Pepper futures market saw high volatility with the prices falling sharply on selling pressure and bearish activities, but then recovered during the weekend on good buying support. The inherent strength of the Indian pepper viz., a strong domestic market, is appears to be playing a vital role to keep the pepper prices up even as the western markets are facing severe credit crunch consequent to the global economic recession on the one hand and the spreading of market depressing reports from overseas of increased availability in Indonesia on the other. All contracts on NCDEX dropped by Rs 462 to Rs 697 a quintal and on NMCE it was from Rs 499 to Rs 580 a quintal. Total turn over dropped by nearly 9,202 tones to 23,476 tones. Total open interest during the week declined, by 970 tones, to 10,600 tones.

Furthermore, Spot prices, also in tandem with the futures market trend, fell by Rs 300 a quintal to close at Rs 11,000 (un-garbled) and Rs 11,500 (MG 1) on Saturday last week. According to market sources, the recovery of the market at the weekend implies that the fundamentals continued to remain strong. Indonesians are said to have admitted that the figures given by them at the International Pepper Community meeting held in the Vietnamese Capital during November 24 -27 were wrong. Black pepper availability currently is understood to be in India and Brazil till the new Vietnamese crop hits the world market in late March-early April 2009.