The pepper futures market witnessed a high volatility and all the contracts fell sharply during the week and closed much below the previous weekend closing.
Indian parity is competitive at $3,150-3,250 a tonne (c&f). The difference between the Indian prices and that of other origins is now insignificant, market sources told Business Line.
The futures market has been giving the impression that the trading is confined to first three deliveries as 99 per cent of the trading was of the first three months.
There was only “buying and selling” exercise going on. The Regulator does not seem to be concerned about all these factors, market sources told Business Line.
Sharp fall in prices
All the contracts witnessed a sharp fall which was by Rs 951 to Rs 1,275 a quintal. September contract fell by Rs 951 to close at Rs 14,702 aquintal at the weekend close. October and November dropped by Rs 997and Rs 1,124 respectively to Rs 14,975 and Rs 15,201 a quintal.
Turnover
Total turn over fell by 7,645 tonnes to 68,345 tonnes. September turnover fell by 17,953 tonnes while that of October and November by 9,787 tonnes and 339 tonnes respectively. Total open interest dropped by 1,747 tonnes while that of September by 2,329 tonnes and October by 441 tonnes and November by 148 tonnes.
Spot prices during the week fell by Rs 600 to close at Rs 14,100 (un-garbled) and Rs 14,600 (MG 1) a quintal at the weekend close.
According to the International Pepper Community (IPC) the black pepper market at origins remained firm, with the exception of India. Price volatility took place for Malabar black. Trading at the commodity exchange, however, remained active.
At Kochi, average prices eased two per cent. Futures prices were also down by around 2-3 per cent.
Under this tight supply situation, the decrease is expected to be only temporary. Internal demand absorbed its lower crops quickly. In Vietnam, inventory is expected to be sufficient to meet their commitments. Black pepper prices at HCMC increased marginally by around one per cent, both local and f.o.b. It was reported that pepper harvest in Lampung has been completed. Total output of this year’s crop is estimated to be lower from last year. Local prices in Lampung were up further, with limited activity. Increased prices were also took place in Sarawak and Sri Lanka.
WHITE PEPPER
Increasing trend also took place for white pepper price, with the exception of white pepper in Vietnam. In Bangka, local prices increased further to around IDR 45,000 a kg from IDR 43,000 at the last week’s close.
Average price increased by four per cent. In Sarawak and Hainan,white pepper prices also increased marginally, by around one per cent. In Vietnam, local prices of white pepper were stable, while for f.o.b. price eased by two per cent.
Source : Business Line