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Pepper futures decline on bearish activities |
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Pepper futures on Friday dropped on bearish activities and reports that Vietnam pepper was easier and offered by multinational operators at lower rates.
They are said to be offering Vietnam 500 GL and 550 GL at $2,850 and $3,100 a tonne (c&f) respectively, following the price trend in the Indian futures market, market sources told Business Line.
Investors were buying pepper from the spot market and selling futures. Interstate dealers were also buying spot from the terminal at Rs 14,800-15,100 a quintal.
Some selected buying took place at Rs 14,800–14,900 a quintal, in the primary markets. As the prices of pepper in Kerala are higher than that of Karnataka, pepper from Karnataka was entering Wayanadu, traders said. In Karnataka, pepper is being traded at Rs 14,300–14,500 a quintal.
Bearish reports
International dealers, with operations in Vietnam and India, were spreading bearish reports about Vietnam and that, in turn, pulled the futures market down yesterday also.
April contract on NCDEX declined by Rs 50 to close at Rs 15,021 a quintal.
May and June were down by Rs 65 and Rs 67 respectively, to close at Rs 15,350 and Rs 15,610 a quintal.
Total turn over dropped by 1,359 tonnes to 6,527 tonnes. Total open interest declined by 307 tonnes to 12,378 tonnes.
April open interest fell by 645 tonnes to 1,871 tonnes. May and June open interest moved up by 256 tonnes and 63 tonnes.
Spot prices
Spot prices remained unchanged at previous levels of Rs 14,500 (ungarbled) and Rs 15,000 (MG 1) a quintal, as there was matching demand and supply.
In the international market, Indian parity was at $3,600 a tonne (c&f) Europe and $3,700 a tonne (c&f) USA.
According an overseas report, the market appeared to be weaker. Most of the buyers were on a wait and watch mode on the trend in the Asta pepper prices.
Source : Business Line
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