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.

Pepper Futures Decline Additional Margin - Oct 23, 2008

Kochi: Pepper futures market fell on Oct 21 following the withdrawal of the additional margin on sellers and for want of follow up support from overseas markets. The regulator has withdrawn on Oct 21 the four per cent additional margin imposed on sellers recently taking into the consideration the unhealthy scenario prevailing in the futures markets. Investors were liquidating their stocks both farm grade and validity expired materials and buying back futures. November contract declined by Rs 166 to Rs 12,655 a quintal.

December and January fell by Rs 190 and Rs 199 a quintal to Rs 12,782 and Rs 12,925a quintal respectively. Spot prices in tandem with the futures market trend slid by Rs100 a quintal on Oct 21 to close at Rs 12,600 (un-garbled) and Rs 13,200(MG 1).

Pepper Futures Market Bounced Back Touched Futures - Oct 8, 2008

Kochi: The pepper futures market on Oct 6 bounced back and touched the upper circuit on good purchasing support from investors. October contract increased by Rs 386 to Rs 12,980 a quintal, but still below the spot price for MG 1 of Rs 13,500 a quintal. November and December contracts increased by Rs 413 and Rs 376 a quintal respectively to Rs 13,175 and Rs 13,400, both below the spot price. Total turnover on NCDEX fell by 942 tonnes to 7,581 tonnes. Total open interest fell by 218 tonnes to 17,817 tonnes.

Spot prices fell by Rs 100 a quintal on selling pressure to close at Rs 12,900 (un-garbled) and Rs 13,500 (MG 1) on Oct 7. Vietnam was offering Asta grade according to US brokers at $3,275 a tonne (c&f) while Ecuador at $3,100 a tonne (c&f). Indian parity on OCt 7 was $3,025 a tonne (c&f) Europe and $3,125 a tonne (c&f) US.

Pepper Futures Increase On Purchasing Support - Sep 23, 2008

Kochi: Pepper futures market, which opened lower increased later on Sept 22 and hit the ceiling at close on good domestic buying support. October contract increased Rs 366 a quintal to Rs 13,140. November and December increased by Rs 365 and Rs 340 to Rs 13,405 and Rs 13,650 a quintal respectively. Total turnover on NCDEX increased by 5,771 tonnes to 10,958 tonnes. Total open interest increased by 84 tonnes to 17,454 tonnes. August net open position declined by 1,078 tonnes to 9,106 tonnes, while November and December positions increased 934 tonnes and 173 tonnes respectively. October contract increased Rs 362 a quintal to close at Rs 13,123

Pepper Futures Increase On Purchasing Support - Sep 20, 2008

Kochi: Pepper futures market on Sept 19 saw high volatility and after going up it went down and closed marginally up on purchasing support. People were switching over to October and November. However, some were purchasing because of the low prices at the exchange and non-availability of ready pepper in the open market. September contract increased Rs 14 a quintal to Rs 12,690 on NCDEX.

October and November contracts were also up Rs 44 and Rs 36 to Rs 12,849 and Rs 13,101 a quintal, respectively, but far below the spot price of MG 1. Total turnover increased by 2,977 tonnes to 11,626 tonnes on NCDEX while total open interest increased 185 tonnes to 18,391 tonnes. Net open position for Sept declined by 858 tonnes while October and November increased 34 tonnes and 971 tonnes, respectively. Spot prices ruled steady at Sept 18 levels of Rs 12,800 (un-garbled) and Rs 13,400 (MG 1) a quintal

Pepper Futures Regain On Purchasing Support - Sep 19, 2008

Kochi: Pepper futures market increased on Sept 18 and crossed the first circuit on purchasing support. September contract on NCDEX increased by Rs 385 a quintal to Rs 12,700 on Sept 18 which is Rs 100 below the spot price for spot un-garbled pepper. October and November contracts increased by Rs 289 and Rs 298 to closed at Rs 12,821 and Rs 13,070 a quintal respectively. The increase in other contracts was from Rs 280 to Rs 330 a quintal. Total turnover on NCDEX increased by 1,953 tonnes to 8,649 tonnes.

Total open interest fell by 529 to 18,206. The September contract is to mature on Friday as the last day Sept 20 being Saturday. An estimated 1,200 tonnes of pepper is likely to be delivered. Indian parity increased to $3,025-3,050 a tonne (c&f) Europe and $3,125-3,150 a tonne (c&f) US. According to a latest overseas report, Vietnam pepper is increased and FAQ 500 was sold at $2,550 a tonne (f.o.b.), as there was a tight supply

Pepper Futures Witnesses Down Trend - Sep 16, 2008

Kochi: Pepper futures saw a sharp decline due to pessimistic activities and as a result, all the contracts fell by Rs 853-903 a quintal on NCDEX, while on NMCE, it was from Rs 863 to Rs 1,073 a quintal. Thus, the September, October and November contracts remained below the spot prices of MG 1 at Rs 13,400 a quintal. The sharp decline at a time when the Indian rupee is weakening against the dollar and the fundamentals are remaining unchanged is affecting the farmers and dealers. Indian parity maintained around $3,000 a tonne (c&f). The spot rates fell by Rs 500 a quintal in tandem with the futures market trend and closed at Rs 12,800 (un-garbled) and Rs 13,400 (MG 1) a quintal. Vietnam has anticipated its production for 2008 as about 90,000-95,000 tonnes.

The global market continued to remain quiet and prices eased with the exception of Lampung. At Daklak, pepper rates for raw material slid down to VND 37,000 a kg from VND 40,000 last week. In Sarawak, local prices stood at MYR 7,960 a tonne through out the week or down by two per cent both local and f.o.b. In Sri Lanka, average rates at producing areas also declined by two per cent

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 Fell -Aug 30 , 2008

Kochi: Pepper futures market declined on Aug 29 on pessimistic operations and the September contract declined below the spot prices. September contract fell by Rs 115 a quintal to close at Rs 13,943, much below the spot price of Rs 14,200 of MG 1. The decline in other contracts was from Rs 38 to Rs 117 a quintal on NCDEX. Total turnover increased by 1,920 tonnes to 5,903 tonnes while total open interest fell by 232 tonnes to 19,874 tonnes. September declined by 444 tonnes while October and November moved up by 147 tonnes and 55 tonnes respectively.

Exporters were also jumping away from taking delivery because of fear of the quality of the material. In fact, at a meeting organized by the FMC in Bangalore early this week, dealers and farmers of sugar, pepper and rubber and some chamber of commerce people asked the Regulator to introduce some mechanism to arrest this manipulation of the market apart from putting in some fool-proof mechanism to ensure quality of the material delivered. Purchasers in the overseas markets are also loosing confidence in the futures market.

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 End Marginally Higher - 28 Aug 08

Kochi: Pepper futures market after saw high volatility on Aug 27 closed marginally higher. On NCDEX, September contract increased by Rs 40 a quintal to close at Rs 14,016, far below the MG 1 spot price of Rs 14,200 a quintal. The increase in other contracts except February was from Rs 24 to Rs 58 a quintal. Total turn over fell by 947 tonnes to 6,733 tonnes while total open interest fall by 19 tonnes to 20,110 tonnes. September and November open interest declined by 411 tonnes and 13 tonnes respectively while October moved up by 351 tonnes. Indonesia was looking for their new crop to arrive. Brazil was lower because of a strong dollar and offering B Asta at $2,975 a tonne (fob). B1 was cited at $2,850 at tonne (fob) and B2 at $2,750 a tonne (fob). Vietnam cited FAQ 500 GL at $2,750 a tonne (fob) and 550 GL at $2,900 a tonne (fob). L Asta was reportedly quoted at $3,500-3,600 a tonne in the US.

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 Futures Decline On Pessimistic Speculative Activities - Aug 12 , 2008

Kochi: Pepper futures market on Aug 11, traded easier on pessimistic speculative activities. August contract declined by Rs 89 a quintal to close at Rs 13,820, while September declined by Rs 78 to close at Rs 14,090 and October by Rs 101 a quintal to close at Rs 14,382 on Aug 11, on NCDEX. Total volume increased by 2,096 tonne to 5,766 tonne, while net open position moved up by 158 to 20,570 tonne. The pessimistic sentiment is due to a possible reduction in import duties from Asean countries. However, a strong rupee against dollar has kept the Indian parity above all other origins at $3,500-3,550 a tonne (c&f). Domestic demand remained to show strength on account of the ensuing festival 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 Drop On Bearish Trend

Kochi: Pepper futures market has witnessed a fall during the week on bearish sentiments despite all the other origins remaining steady to firm.

Indian parity continued to remain competitive at $3,900-3,950 a tonne.

Availability of Asta grade pepper is reportedly tight and that in turn might compel the overseas buyers to start covering and in that case MG 1 at the current rate is at an advantageous position.

All the contracts on NCDEX except September dropped during the week by Rs 35-218 a quintal while September moved up by Rs 22 a quintal. On NMCE, the drop was from Rs 109 to Rs 175 a quintal.

Total turn over on NCDEX fell by 18,396 tonnes to 36,632 tonnes while that on NMCE, it declined by 693 tonnes to 5,805 tonnes during the week.

Total open interest on NCDEX dropped by 121 tonnes to 18,413 tonnes while that on NMCE declined by 79 tonnes to 2,155 tonnes.

Spot prices in tandem with the declining trend fell by Rs 100 a quintal during the week to close at Rs 14,000 (un-garbled) and Rs 14,600 (MG 1).

IPC REPORT

The black pepper market, according to the International Pepper Community (IPC) report for the week, remained quiet during the week with an indication of uptrend at the week end.

Activities at origins continued to be calm due to lack of overseas demand.

The economic recession in the US and the wait and watch policy adopted by buyers seems to be the factor influencing the demand.

Vietnam, the largest pepper supplier is now in the peak of its harvesting season.

The market showed an uptrend at the week’s close after continued decline during recent month due to lack of demand.

At HCMC, local price increased marginally to VND 55.000 a kg from VND 54,500. F.O.B. prices also moved up from $3,500 and $ 3,700 to $3,550 and $3,750 a tonne for black 500g/l and 550g/l grades respectively.

In India, the market also slowed down as indicated by limited activity at the Commodity Exchange.

It is reported that the pepper futures market continued to witness volatility due to un-seasonal rains over the last few days combined with thin arrivals at the terminal market.

Futures prices were fluctuated at lower level at the beginning of the week and slightly moved up on Wednesday and then declined at the weekend.

WHITE PEPPER

The market for white pepper was also quiet. Local prices in Bangka and Sarawak were unchanged, but f.o.b. price of Sarawak white eased by two per cent. In Vietnam, f.o.b. prices stand at $5,580 a tonne.

Pepper Futures Turn Volatile

Kochi: Pepper futures market on Wednesday increased on speculative activities. The market was highly volatile because of the sell calls in the early hours of trading and later followed by buy calls from the bull speculators.

The firm stand of the sellers in other origins in the prices might compel the operators in the US and Europe to start buying now.

India being competitive at $3,925 a tonne (c&f), there are chances that some demand might come to India for MG 1, market sources told Business Line.

Domestic demand was slow. Non issuance of notification reducing the announced CST rates has slowed down the activities in the market as “people are not ready to take any risk”, they said.

According to overseas reports the pepper prices in all other origins ruled steady. Vietnam was offering 500 GL at $3,450-3,550 a tonne (f.o.b.).

Indonesia was quoting L Asta at $4,000-4,050 a tonne (f.o.b.) while Brazil was offering B1 at $3,700 a tonne (f.o.b.) and 500 GL at $3,600 a tonne.

CONTRACT POSITION

April contract on NCDEX on Wednesday by Rs 256 a quintal to Rs 14,790. The increase in other contracts was from Rs 251 to Rs 295 a quintal.

On NMCE, April contract moved up by Rs 238 a quintal to Rs 14,701. The increase in other contracts was from Rs 20 to Rs 326 a quintal.

Total turnover on NCDEX moved up by 583 tonnes to 6,303 tonnes, while that on NMCE increased by 780 tonnes to 1,342 tonnes.

Total open interest on NCDEX went up by 62 tonnes to 18,454 tonnes. April position dropped by 40 per cent, while May and June moved up by 49 per cent and 9 per cent respectively. On NMCE, total open interest went up by 67 tonnes to 2,094 tonnes.

Spot prices continued to rule steady at previous levels of Rs 14,100 (un-garbled) and Rs 14,700 (MG 1) a quintal on Wednesday.

Pepper Futures Decline

Kochi: The pepper futures market continued to witness a decline during the week though the sentiment has been bullish, of late, due to un-seasonal rains over the last 10 days combined with thin arrivals at the terminal market.

All the contracts on the exchanges fell. On NCDEX, the drop was from Rs 550-644 a quintal while on the NMCE it was from Rs 567 to Rs 650 a quintal.

Total turn over on NCDEX increased by 11,340 tonnes to 55,028 tonnes, while on NMCE it moved up by 872 tonnes to 6,458 tonnes.

Total open interest on NCDEX dropped by 1,124 tonnes to 18,534 tonnes during the week, while on NMCE it moved up by 445 tonnes to 2,254 tonnes.

Spot prices also fell by Rs 200 a quintal to close at Rs 14,100 (un-garbled) and Rs 14,700 (MG 1) a quintal during the week.

The quantity of stocks held on the exchanges are said to be low and estimated at 5,500 tonnes. It is expected that about 60 per cent of the crop has been harvested with the majority in the hands of farmers. The bullishness has been shortened by exporters/traders cleaning up their books for the financial year end. MG 1 prices remained at $3,950-4,000 a tonne (c&f) for Apr/May positions.

Vietnam Asta, despite 80-85 per cent of the harvesting is over, remained uncompetitive. However, the prices of 500 and 550 GL eased to $3,600-3,650 and $3,800-3,850 a tonne (f.o.b.) respectively.

In Indonesia, the prices remained at better levels due to domestic activities. Brazil is said to reacting slowly to the easier market and remained uncompetitive at $4,100-4,200 a tonne (c&f). Brazil was offering B Asta at $3,850-3,900 a tonne (f.o.b.) Belem while B1 560 GL at $3,700-3,800 a tonne (f.o.b.) Belem both for Apr/Jun shipments.

Buyers continued to remain on a wait-and-watch mode while the sellers feel that the buying activity would commence shortly for all positions and in all consuming markets.

IPC REPORT

According to International Pepper Community (IPC), black pepper market in general was quiet with limited activity during the week.

In Vietnam, the market was also quiet and prices declined further. Pepper crop is on the peak season. Trade source reported that FOB prices of Vietnamese pepper eased from $3,520 a tonne for black 500g/l to $3,450, while for black pepper 550 g/l declined from $3,720 to $3,600. The strengthening local currency against dollar has also influenced the situation.

In Lampung, local prices were slightly down, with limited activity as stocks at farms has been absorbed by traders. Lampung was reportedly offering at $3,850 a tonne (f.o.b.) declined from $4,000 offered earlier, but they were not keen to sell at lower levels.

In Sarawak local prices were also down by 3 per cent, while f.o.b. prices were reported stable. Brazil was quoted BASTA at $3,850 a tonne (f.o.b.).

In Sri Lanka, average prices of black pepper at pepper growing areas moved up by two per cent from last week’s price.

WHITE PEPPER

The market for white pepper showed a downward trend at sources. In Pangkal Pinang, local prices of Muntok white pepper fell marginally by one per cent after witnessed a significant movements during last week. In Sarawak, prices also eased by one per cent, while f.o.b. prices of Sarawak white were reported stable.

Pepper Futures Drop On Lack Of Buying

Bear operators on Thursday pulled down the pepper futures market despite not much selling pressure fundamentally.

They pulled down the prices on reports of fall in Vietnam prices. Because of the financial year ending, nobody was buying except exporters who were covering from the exchanges as the prices there were lower than that of spot, market sources told Business Line.

Vietnam was offering V Asta at $3,900-4,000 a tonne (f.o.b.) depending upon the seller, while 500 GL at $3,450 and 550 GL at $3,600 a tonne (f.o.b.).

Indonesia was offering L Asta at $3,850 a tonne (f.o.b.) but they were said to be not keen to sell at lower levels. Brazil said to have quoted $3,700 - $3,750 a tonne (f.o.b.) for B Asta.

Indian parity remained at $3,900-3,950 a tonne (c&f) and still remained competitive in the international market.

CONTRACT POSITION

April contract on NCDEX on Thursday fell by Rs 264 a quintal to Rs 14,648. The fall in other contracts was from Rs 183 to Rs 275 a quintal.

On NMCE April contract dropped by Rs 223 a quintal to Rs 14,550. The fall in other contracts except August was from Rs 126 to Rs 246 a quintal, while August moved up by Rs 232 a quintal.

Total turnover on NCDEX increased by 2,425 tonnes to 11,183 tonnes, while that on NMCE declined by 58 tonnes to 1,138 tonnes.

Total open interest on NCDEX moved up by 740 tonnes to 19,378 tonnes. April position dropped by 48 per cent while May and June moved up by 43 per cent and 7 per cent respectively.

On NMCE, total open interest went up by 151 tonnes to 2,125 tonnes.

Domestic demand was slow.

Spot prices also dropped by Rs 100 a quintal on Thursday to close at Rs 14,100 (un-garbled) and Rs 14,700 (MG1) in tandem with the futures market trend.

Bears Pull Down Pepper Futures

Kochi: Bearish activities pulled down the pepper futures market on Monday even as the fundamentals were not supporting it.

The pushing down of the market is said to be under the influence of the sharp fall in the stock market. There was no spot selling pressure.

The rupee weakened against the dollar because of the influence of the stock market decline. Indian parity remained at $3,900 -3,950 a tonne (c&f) as a result Indian pepper is now more competitive hence demand is likely to come to India. All other origins are above our parity, market sources told Business Line.

Vietnam was slightly better, according to unconfirmed reports.

Turn over volumes are coming down as small players are loosing confidence in the futures market because of alleged “market manipulations”, they said.

Harvesting in Karnataka is in full swing and black pepper consignments from Chickmagalur and Sakleshpur are being moved out to north Indian markets by selected operators evading tax.

CONTRACT POSITION

March contract on NCDEX dropped by Rs 172 a quintal on Monday to Rs 14,750. The fall in other contracts was from Rs 74 to Rs 189 a quintal.

On NMCE, March contract matured and 178 tonnes of pepper were delivered. April contract fell by Rs 104 a quintal to Rs 15,080. The fall in other contacts except June was from Rs 69 to Rs 89 a quintal. June moved up by Rs 4 a quintal.

Total turnover on NCDEX moved up by 1,061 tonnes to close at 12,525 tonnes, while on NMCE it went up by 633 tonnes to 1,596 tonnes.

Total open interest on NCDEX declined by 173 tonnes to 20,278 tonnes. March and April positions declined by 11 per cent and 60 per cent, while May moved up by 24 per cent. On NMCE, total open interest moved up by 178 tonnes to 1,611 tonnes.

Spot prices ruled steady at previous levels at Rs 14,300 (un-garbled) and Rs 14,900 (MG 1) a quintal on Monday.

Pepper Drops On Liquidation

Kochi: Pepper futures market fell sharply on Wednesday on bearish sentiments and on reported decline in Vietnam prices.

There was not much selling pressure on spot. Big stockists, however, was liquidating their stocks and the exporters were covering to meet their immediate requirement. As India is, at present, the cheapest source for black pepper some business is taking place, market sources told Business Line.

The speculators are pushing up the market unduly. When nearing maturity they don’t take delivery and instead switch over to next positions.

Meanwhile, almost the entire domestic demand is met directly from the primary markets evading tax, they alleged.

Vietnam on Wednesday reduced its prices of FAQ 500 GL to $3,770 a tonne, FAQ 550 GL to $3,970 a tonne (f.o.b.). Double while was being offered at $5,820 a tonne (f.o.b.).

Lampong Asta was being offered at $4,000-4,050 a tonne. Indian parity for March on Wednesday declined to $3,850 a tonne (c&f).

The dip in the Indian parity has created buying opportunity for the overseas buyers, but most of them are still waiting for the prices to decline further.

CONTRACT POSITION

March contract on NCDEX fell by Rs 445 a quintal on Wednesday to close at Rs 14,310. The fall in other contracts was from Rs 258 to Rs 486 a quintal.

On NMCE, March contract dropped by Rs 380 a quintal to Rs 14,180. The drop in other contracts was from Rs 10 to Rs 386 a quintal. Total turnover on NCDEX increased by 5,534 tonnes to 16,493 tonnes, while that on NMCE declined by 44 tonnes to 1,503 tonnes.

Total open interest on NCDEX dropped by 868 tonnes to 21,592 tonnes. March and April positions fell by 16 per cent and 60 per cent respectively while May moved up by 478 tonnes.

On NMCE, total open interest moved up by 228 tonnes to 2,261 tonnse.

Spot prices in tandem with the futures market trend fell by Rs 200 quintal on Wednesday to close at Rs 14,100 (un-garbled) and Rs 14,700 (MG 1).