Pepper Futures Market Decline - Sep 06 , 2008

Kochi: Bear operators downed the pepper futures market on Sept 5. September contract on NCDEX declined by Rs 356 a quintal to Rs 13,585, which is Rs 415 below the spot price for MG 1 of Rs 14,000 a quintal. Even October contract declined below the spot price by Rs 336 a quintal to Rs 13,880. November contact fell by Rs 314 to Rs 14,130. On NMCE, September contract fell by Rs 421 a quintal to Rs 13,617. The decline in other contracts was from Rs 308 to Rs 365 a quintal. Total turnover on NCDEX fell by 4,876 tonnes to 7,965 tonnes, while total open interest increased by 248 tonnes to 20,319 tonnes

Pepper Futures Market Continues Decline - Sep 05, 2008

Kochi: Pepper futures market continued to fall on pessimistic activities and lack of demand. September contract fell by Rs 41 a quintal to Rs 13,920, much below the spot price of Rs 14,200 a quintal for MG 1. October and November fell by Rs 40 and Rs 42 a quintal to Rs 14,203 and Rs 14,442 respectively. Total volume on NCDEX increased by 175 tonnes to 3,089 tonnes, while total open interest also increased by 260 tonnes to 20,071 tonnes. Spot prices maintained at previous levels of Rs 13,600 and Rs 14,200 (MG 1) a quintal.

Pepper Futures Market Saw High Volatility - Aug 29 , 2008

Kochi: Pepper futures market saw high volatility on Aug 28 and moved slightly up. September contract increased by Rs 24 a quintal to Rs 14,055 while October and November increased by Rs 25 and Rs 21 respectively to Rs 14,355 and Rs 14,600 a quintal. Total turnover fell by 2,740 tonnes to 3,983 tonnes, while total open interest fell by 4 tonne to 20,106 tonned.

In the world market the availability is likely to be limited in the coming months and till the next Vietnam crop arrives in the market in Mar/Apr 2009. The Brazilian crop is likely to be around 35,000 tonnes. Indian parity is $3,475 tonne (c&f) for Europe and $3,525 a tonne (c&f) for the US. Overseas purchasers were reported to have been inactive probably because of weaker advices from Brazil and Ecuador. E Asta was cited 3,250 a tonne c&f US. Brazil Asta was reportedly traded at $2,900 (f.o.b.). Vietnam has quoted 500 GL and 550 GL at $2,850 and $3,025 a tonne respectively (fob) HCMC. Vietnam white pepper was offered at $4,415 a tonne (f.o.b.).

Pepper Futures Mkt Decline - Aug 20 , 2008

Kochi: Pepper futures market fell on Aug 19 on pessimistic activities. August contract fell by Rs 156 to Rs 14,010, below the spot rates for MG 1. The fall in other contracts was from Rs123 to Rs201 a quintal. In fact, exchange pepper was available cheaper. The NCDEX is said to be holding a stock of around 5,700 tonnes now. Total turnover on NCDEX fell by 1,655 tonnes to 6,598 tonnes. Total open interest also declined by 192 tonnes to 20,486 tonnes. The open interest for August declined by 1,685 tonnes, while that of September declined by 16 tonnes. October increased by 121 tonnes. Spot prices in tandem with the futures market trend fell by Rs 100 a quintal to close at Rs 13,700 (un-garbled) and Rs 14,300 a tonne (MG 1) on Aug 19. Indian parity for US was at $3,625 a tonne (c&f) while for Europe it was $3,550 a tonne (c&f). V Asta was quoted at $3,450 a tonne (f.o.b) while 550 GL at $3,050 a tonne (f.o.b).

Pepper Futures Market Sees High Volatility - Aug 19 , 2008

Kochi: The pepper futures market on Aug 18 saw high volatility and closed by and large steady. There have been variations without any connection to spot availability. Domestic purchasers adopted a wait and watch approach despite good demand, because of the high volatility in the prices.

There was no selling pressure. August contract fell marginally by Rs 12 to Rs 14,160 a quintal, while September and October increased by Rs 10 and Rs 33 to Rs 14,510 and Rs 14,831 a quintal respectively. The increase in November, December and January was from Rs 42 to Rs 52, while February was down by Rs 25 a quintal. Total turnover increased by 2,534 tonnes to 8,253 on NCDEX, while total net open position declined by 142 tonnes to 20,678 tonnes. B Asta was sold at $3,170 c&f Rotterdam. Vietnam 500 GL was quoted at $2,780-2,800 a tonne (fob); 550 GL at $2950-2970 a tonne (fob) and V Asta at $3,200 a tonne (fob).

There is a feeling in the market that coverage, at present, may be difficult in the coming days given the tight supply position. Spot prices ruled firm at last weekend close of Rs 13,800(un-garbled) and Rs 14,400 (MG 1) a quintal on Aug 18.

Pepper Demand Increase From Next Month In The World Market - Aug 18 , 2008

Kochi: Demand for pepper in the world market is hoped to increase from next month once the purchasers come back from the summer holidays. The grinding industry will also begin purchasing for the winter demand and the festival season is already around the corner.

The futures market on Aug 16 saw a downward trend on pessimistic activities and the consequent selling pressure in tandem with the trend in other commodities apart from reports from Brazil that there were 48 detentions of Indian pepper consignments by the US FDA during the past 12 months

India has been sending out wrong signals because of the high volatility in the market due to highly speculative activities by the bulls and bear operators. International market is firm and all the other origins are providing below the Indian parity. Indonesia, because of the projected small crop appears to have decreased it's selling of light berries.

Cardamom Rates Fall - Aug 14 , 2008

Kochi: The cardamom prices have saw a falling trend last week at auctions held in Kerala and Tamil Nadu on increased arrivals. The average price fell to Rs 580 a kg last week from Rs 600 in the previous week. The average price on Aug 11, the first day of the current week, at the Cardamom Planters' Association (CPA) auction held in Bodinayakkanur, also fell to Rs 561 a kg from the Aug 10 average of Rs 580. The total arrivals here stood at nine tonnes and the entire quantity was sold. The market has shown a falling trend. The purchasers now anticipate the crop to be better in the coming days as the growing areas have started receiving good rains.

Pepper Futures Increase - Aug 13 , 2008

Kochi: Pepper futures market on Aug 12 increased on speculative activities by the bulls. August contract increased by Rs 89 a quintal while the increase in other contracts was from Rs 43 to Rs 102 a quintal from the closing price of Aug 11. However, January fell by Rs 51 a quintal.Total turn over increased by 1,912 tonnes on NCDEX to close at 7,678 tonnes while the net open position declined by 67 tonnes to close at 20,503 tonnes. August and September positions fell by 405 tonnes and 85 tonnes respectively while October moved up by 112 tonnes. Spot prices ruled frim at Rs 13,700 (un-garbled) and Rs 14,300 (MG 1) a quintal on Aug 12. There was no selling pressure for the spot pepper.

In the global market, easier trend continued in Brazil and Vietnam. The purchasers in Europe and US are on holidays while because of the slow economic activity dealers were keeping inventory only for two weeks and not for 6-7 weeks like in the past. The prices on Aug 12 for different origins C&F New York were MG1 L ASTA - $3,700-3,750 a tonne;V ASTA - $3,525-3,575 a tonne; B ASTA - $3,025-3,050 a tonne FOB; Vietnam White was quoted at $4,850-4,900 a tonne while Muntok Whiteat $4,950-5,000 a tonne (c&f).

Kochi To Organize Global Summit On Rubber - Aug 07 , 2008

Kochi: Kochi has decided to organize India's first Rubber Summit and Dinner on August 16 with large participation of rubber and tyre industry leaders from across the globe. The theme of the event is India: A Potential Rubber Power. There will be a seminar on the potential, challenges and opportunities of the country's rubber industry in the backdrop of rising prices of natural rubber. The centre stage of global rubber economy has been shifting to the Asian region, in terms of production and consumption, and this makes the event here significant.The theme of the event assumes significance in the light of China having emerged as the world's largest consumer of rubber.

At present, India is facing the challenge of catching up with China in terms of economic growth. Experts and decision makers from major rubber producing countries are expected to make presentations at the summit in Kochi on a variety of rubber-related topics such as supply and consumption trends, price trends, synthetic and other alternatives of natural rubber, impact of oil prices on rubber prices and the role of R&D. Those who will be making presentations at the summit include experts from Rubber Board (India), International Rubber Study Group, All India Rubber Industries Association, Malaysian Rubber Board and All India Tyre Manufacturers Association. The conference is being organised by Rubber Asia, a rubber trade magazine of Asia, in association with Rubber Board and All India Rubber Industries Association.

Cardamom Rates Increase On Thin Arrivals - Aug 06 , 2008

Kochi: Cardamom prices increased last week on thin arrivals at auction centres in Kerala and Tamil Nadu. The main reason attributed to the fall in arrivals is incessant rains and the accompanying winds in the growing areas which disrupted picking. The good arrivals since June last were because of the extended summer showers. Even now, the growing areas are getting rains and that could change the situation. The arrivals on Aug 4 at the CPA auction in Bodinayakkanur was at six tonnes and almost the entire quantity was sold out. Maximum price got was Rs 637.50 and the minimum, Rs 489. The average price was at Rs 560.42.

North Indian purchasers were active. The market was firm with an upward swing. The bulk accounted for 20 per cent of it with 8mm bold fetching Rs 600 and above a kg. Total arrivals during the current official season from August 1 to 3 was at 36 tonnes as against 43 tonnes during the same period last season. Similarly, the sales also fell by 2,175 tonnes to 5,494 tonnes from 7,669 tonnes. The weighted average price was at Rs 507.84 a kg as against Rs 315.27 the previous season.

Pepper Futurer Sees High Volatility - Aug 06 , 2008

Kochi: Pepper futures market on Aug 5 was highly volatile and ended slightly higher than that of Aug 4. August contract was increased by Rs 48 a quintal to close at Rs 14,111. The increase in other contracts was from Rs 59 to Rs 75 a quintal on NCDEX. Strengthening of the rupee against the dollar coupled with the upward trend in the Indian market has kept our parity at higher levels at $3,550-3,600 a tonne C&F.

Domestic demand remained to be good and it is hoped to go up as the festival season is fast approaching. The total turnover was increased by 1,388 tonnes to close at 6,734 tonnes while the total open interest fall by 314 tonnes to 19,773 tonnes.

Pepper Futures Market Fall On All Contracts On Bearish Activities - Aug 05 , २008

Kochi: Pepper futures market on Aug 4 saw a fall on all contracts on bearish activities. August contract was fell by Rs 125 a quintal to close at Rs 14,065. The decline in other contracts was from Rs 100 to Rs 137 a quintal. Total turnover fell by 2,204 tonnes to 5,346 tonnes. August fell by 246 tonnes while September and October increased by 41 tonnes and 314 tonnes respectively. North Indian dealers are said to be moving around in the growing areas and primary markets, ready to purchase at terminal market price and even at higher levels. MG 1 spot price is above the August price and hence some operators were ready to sell from selective warehouses at Re 1 above the August price. The current market trend does not appear to be in the interest of the futures market and needs some correction. Spot rates in tandem with the futures market trend were down by Rs 100 a quintal to close at Rs 13,700 (un-garbled) and Rs 14,300 (MG 1) on Aug 4.

Kochi Tea Auction Sees Firm Trend - July 26 , 2008

Kochi: Firm trends were apparent in demand and rates at the Kochi Tea auction. CTC dust tea varieties saw a good demand, as blenders, domestic consumers, companies and exporters were active in the market. CTC market was generally up Rs 2-4. Orthodox high grown dust varieties were also dearer while medium orthodox were firm to dearer by Rs 1-2. Best CTC dust varieties quoted Rs 72-82, medium CTC at Rs 66-70 and below medium at Rs 62-65.

High grown BOPD varieties were at Rs 106-116, medium BOPD Rs 59-60 and secondaries were at Rs 53-55. Best Nilgiri varieties fetched Rs 87-112, medium orthodox Rs 66-92 and plain orthodox quoted Rs 57-65. In the dust category, Kodanad BOPD fetched the top price at Rs 116, Parkside BOPD at Rs 106, Pasuparai FD at Rs 100 and Pasuparai SFD at Rs 94.

Pepper Futures Mkt Sees Up Trend - July 25, 2008

Kochi: The pepper futures market on July 24 was volatile and all the contracts ended slightly up. Reports that Vietnam rates are easier created pessimistic sentiments and arrested the upward move. Indian parity ruled at $3,600-3,650 a tonne (c&f) and continued uncompetitive in the world market, even after the rupee weakened against the dollar on July 24.

Indonesia was quoting at $3,500 a tonne (f.o.b.) and its prices are reported to be easier in the coming weeks. Brazil was quoting Astaat $3,100 a tonne (f.o.b.) Belem while 550 GL at $3,000 a tonne (f.o.b.). Vietnam reported to have quoted 550 GL at $2,950-3,000 a tonne (f.o.b.). The turnover on the NCDEX dropped by 2,422 tonne to 12,331 tonne on July 24 while the Net Open Interest declined by 373 tonne to 20,687 tonne. August net open position fell by 490 tonne to 9,261 tonne while others increased slightly.

Spot prices ruled firm at July 23 levels of Rs 13,800 a quintal (un-garbled) and Rs 14,400 a tonne (MG 1) on July 24.

Kochi Tea Auction See Steady Trend - July 4, 2008

Kochi: There was better demand from exporters for orthodox leaf tea and also for smaller CTC leaf varieties at the Kochi Tea Auction. Blenders were fairly active at the dust auction while interstate purchasers were less active at the leaf tea auction. There was 8,59,000 kg of dust tea on offer where CTC prices eased by Rs 2-3. Medium CTC prices continued barely firm. Orthodox high grown dust remained steady to dearer, while medium orthodox rates eased by Re 1 to Rs 2. Best CTC dust got Rs 67-78, medium CTC quoted Rs 60-65 and below medium was at Rs 55-60. High grown BOPD quoted Rs 90-100, medium BOPD got Rs 52-56 and secondaries ranged at Rs 50-52.

Rubber Merchants’ Plea To Kerala Govt On Refunds - June 6, 2008

Kochi: The Cochin Rubber Merchants Association has urged the Kerala Government to direct the sales-tax authorities to refund the excess amount deposited by the rubber dealers conducting inter-state trade.

The Association President, N Radhakrishnan, pointed out that rubber dealers conducting inter-state trade are passing through a crisis on account of blockage of funds with the State Government as they have deposited over Rs 120 crore towards excess amount on six lakh tonnes of anticipated rubber despatches this year.

Due to the recent notification of the Union Government reducing Central sales tax to 2 per cent, the dealers who pay 4 per cent VAT within the State on their purchases, can realise only 2 per cent on account of inter-state sale. As per the arrangement, the Central Government reimburses the amount to the State Government and the latter refunds the same to the dealer.

The State Government should realise that the amount being refunded is not in the form of subsidy or grant but only a refund of the amount excess deposited by the dealers, Radhakrishnan said. Rubber is sent outside Kerala with accompanying documents such as invoice, delivery note, lorry receipt etc. Once the goods move through the check posts with these documents duly verified by the officials, then only inter-state sale takes place. On the strength of these documents, the Government should authorise the sales tax authorities to refund the excess amount paid by dealers, he added.

He said that more than Rs 50 crore is now blocked with the State Government on this account and the dealers have to borrow money from bank and other sources in order to make good the gap towards working funds. They are not in a position now to raise more working funds and, therefore, are unable to effect further inter-state despatches, he said.

Mixed Trend At Kochi Tea Sale

Kochi: Mixed trends were evident at the Kochi Tea Auction where exporters operated within a limit on bolder dust tea varieties.

At the leaf tea auction, the presence of exporters and inter-State buyers were evident who helped to sustain higher price levels. There was 11,23,000 kg of dust tea on offer at the auction where clean black teas found firm demand.

Other grades shed a rupee while orthodox dusts remained generally steady. Best CTC dust varieties fetched Rs 60-70, medium CTC quoted Rs 54-58 and below medium was at Rs 50-53. High grown BOPD quoted Rs 90-104 and secondaries ranged at Rs 43-44.

High grown whole leaf and flowery varieties were steady, while brokens and fannings were firm. Medium leaf varieties remained firm to dearer with the active interest of exporters and inter-State buyers. Best Nilgiri varieties quoted Rs 82-95, medium orthodox fetched Rs 75-90 and plain orthodox was at Rs 51-57. Best CTC leaf quoted Rs 60-67 and medium CTC ranged at Rs 50-58.

Top Prices

In the dust segment, Kodanad CLBOPD fetched the top price at Rs 104 followed by Pasuparai SFD at Rs 80, Pasuparai FD at Rs 78 and Sreeram SFD at Rs 74.

In the leaf category Chamraj FOP fetched the top price at Rs 128, followed by Craigmore FOP at Rs 124, Havukal FOP at Rs 116 and Kairbetta TGFOP at Rs 115.

Cardamom Up On Buying Support

Kochi: Cardamom prices, at the auctions held in Kerala and Tamil Nadu last week, improved on thin arrivals and good buying support.

After the March 16 crash, in which the average price fell to Rs 430 a kg, prices increased by around Rs 80 a kg as on Sunday last. The average price at the individual auctions during the week slowly moved up to Rs 512 a kg on Sunday from Rs 480 last Monday.

The arrivals had narrowed down to such a level that auctions were to be cancelled on Friday at Vandanmettu in Kerala and Bodinayakannur in Tamil Nadu on Monday.

The total arrivals at the KCPMC (Kumily) auction on Sunday stood at 24 tonnes, of which 23 tonnes were sold. Maximum price was Rs 633.50 a kg and minimum Rs 330.50 a kg. 8mm bold was sold at Rs 580 – Rs 600 a kg while 7 mm at Rs 525 – Rs 550 a kg. Current bulk with good colour was fetching over Rs 510 a kg, P.C. Punnoose, General Manager, KCPMC, told Business Line.

Market sources attributed the thin arrivals to the poor crop and holding back by major growers. As the arrivals narrowed down, the market sentiment changed and the buyers started buying and that in turn pushed up the prices, they said.

Total arrivals during the current season up to March 30 stood at 4,239 tonnes as against 6,857 tonnes on the same day last year, while sales were at 3,948 tonnes compared to 6,310 tonnes as on March 30, 2007.

The weighted average price during the current season as on March 30 stood at Rs 488.62 a kg as against Rs 304.53 a kg on the same date last season.

Prices of the graded varieties as on March 29 were AGEB Rs 580- Rs 590; AGB Rs 510 – Rs 520; AGS Rs 485 – Rs 495; and AGS1 Rs 465 – Rs 475 a kg. Prices in the local market at Bodinayakannur were AGEB Rs 565 – Rs 580; AGB Rs 485 – Rs 500; AGS Rs 475 – Rs 480; and AGS 1 Rs 460 – Rs 475 a kg.

Good Scope For MG 1 Pepper Exports

Kochi: The Indian pepper prices continued to remain below that of other origins during the week, placing the Indian commodity at an advantageous position among its counterparts.

Non-availability of spot pepper has forced the exporters to cover from the exchanges where the price for March remained below the spot. Exchange prices were declining during the week on selling pressure. All contracts on NCDEX during the week dropped by Rs 138 to Rs 207 a quintal, while on NMCE it was up from Rs 59 to Rs 103 a quintal except for July contract, which moved up by Rs 154 a quintal. The total turnover on NCDEX has shown a sharp fall of 33,478 tonnes during the week to close at 43,688 tonnes. On NMCE it fell by 3,215 tonnes to 5,616 tonnes.

Total open interest on NCDEX dropped by 791 tonnes to 19,660 tonnes. March and April positions fell by 1,334 tonnes and 904 tonnes respectively, while May moved up by 1,420 tonnes. However, on NMCE the total open interest moved up by 178 tonnes to 1,789 tonnes.

Spot prices during the week remained unchanged at previous weekend’s close of Rs 14,300 (un-garbled) and Rs 14,900 (MG 1). Prices of other origins ruled almost firm at higher levels. Indian parity remained at $3,900-$3,950 a tonne (c&f). Indonesian LAsta ruled above $4,150 a tonne (c&f) while Vietnam Asta grade was above $4,300 a tonne (c&f). The other grades such 500 GL and 550 GL in Vietnam were also quoted at higher levels even though there was a marginal decline.

Competitive price

As the supply of heavy pepper (Asta grade) from Vietnam, where harvesting is on, continues to be tight and as a result even multi-origin operators were trying to buy MG 1 from India. Vietnam farmers release their produce at regulated manner, which seems to be the strategy that they experimented last year and turned out to be successful, so as to sustain the prices at higher levels and avert any sharp fall.

The availability of black pepper, especially the Asta grade, in other origins such as Brazil and Indonesia is also reportedly limited. Thus, India, besides Vietnam, is the only other source having pepper of this grade and at a most competitive price.

Therefore, there is a good potential for demand coming to India in the coming weeks for MG 1. White pepper prices also continued to rule high in the world market on short supply.

Marginal Fall In Pepper Futures

Kochi: Pepper futures market on Thursday declined marginally on selling pressure as those holding long positions began to liquidate.

Bears were said to be creating more pressure on long operators to liquidate. Indian parity continues to remain at around $3,900-3,950 a tonne (c&f). Vietnam prices continued to rule higher. 500 GL was being offered at $3,800-3,900 a tonne (f.o.b.) while 550 GL at $4,000-4,100 a tonne (f.o.b.). But, there were no buyers at this rate.

According to an overseas report Vietnam 500GL and 550 GL pepper is coming to India now. In Brazil the prices continued to remain firm at the previous levels and the exporters do not seem to be interested to reduce their price.

The markets are expected to become active after the Easter holidays.

March contract on NCDEX declined by Rs 13 a quintal on Thursday to Rs 14,715. The decline in other contracts except May was from Rs 12 to Rs 47 a quintal. May contract moved up by Rs 9 a quintal.

On NMCE April contract dropped by Rs 12 a quintal to Rs 15,081. August and September contracts dropped by Rs 30 and Rs 19 respectively while May and July moved up by Rs 1 and Rs 204 a quintal respectively.

Spot prices continued to rule at previous levels of Rs 14,300 (un-garbled) and Rs 14,900 (MG 1) a quintal on Thursday.