Pepper Futures Fell Sharply

Kochi: 10 Domestic pepper futures declined sharply on Sept 10, to below spot prices on bearish activities and the quantitative restrictions on the nearby month position despite the prices of other origins ruling high and firm. Indian parity was at $3,300 a tonnes (f.o.b.) and there was business taking place at this level. Others were offering Asta grade at $3,650 a tonnes (f.o.b.). In the Global market the purchasers were by and large quiet. And yet, Vietnam prices moved up probably influenced by the upward trend in the Indian futures market last week. Vietnam was offering 500 GL at $3,150 a tonnes f.o.b., while 550 GL at $3,270 a tonnes (f.o.b.). In Indonesia Lampong Asta continued firm at $3,650-3,675 a tonnes (f.o.b.), while FAQ 500 GL was at $3,350 a tonnes (f.o.b.). Vietnam was offering white pepper at $4,850 a tonnes (f.o.b.). The higher prices fetched by the white pepper has led to a squeeze in Asta grade pepper as the bold berries are being converted in to white. September contract on NCDEX declined by Rs 299 a quintal on Monday to Rs 12,214. The drop in other contracts was from Rs 324 to Rs 405 a quintal. On NMCE, September contract fell by Rs 427 a quintal to Rs 11,905. Total turnover on NCDEX increased by 3,226 tonnes to 18,510 tonnes, while of September and October was up by 10 per cent and 77 per cent respectively.

On NMCE, total turnover went up by 578 tonnes to 1,918 tonnes. Total open interest on NCDEX increased by 45 tonnes to 23,697 tonnes. September position fell by 20 per cent, while October and November increased by 49 per cent and 16 per cent respectively. Open interest on NMCE increased by 132 tonnes to 2,299 tonnes. Spot prices in tandem with the futures market trend dropped by Rs 200 a quintal to Rs 12,000 (ungarbled) and Rs 12,600 (MG 1) on Sept 10.