The pepper futures market at the weekend moved up said to be on a ‘feel good factor’ that the elections results on Saturday might pave the way for a stable Government at the centre and that has reduced the overall decline during the week in various contracts.
The week has witnessed a dull all through as the people were waiting for the elections results to come out at the weekend. Ever since the results came out showing a possible return of the previous government, buyers in Delhi said to have entered the market and started buying more.
As a result, all the contracts on Saturday trading moved up significantly with fresh interests, market sources told Business Line.
However, as the market has been on the declining trend throughout the week, there has been a decline in over all futures prices at the weekend. Drop was from Rs 207 to Rs 406 on NCDEX while that of NMCE was from Rs 245 to Rs 396 a quintal.
Total turn over moved up by 183 tonnes during the week to close at 22,211. Total open interest dropped by 485 tonnes to 7,397 tonnes.
May open interest during the week fell by 1,860 tonnes to close at 1,438 tonnes. Many have switched over to June and July positions.
Spot prices in tandem with the futures market trend fell by Rs 500 a quintal to close at Rs 12,000 (un-garbled) and Rs 12,500 (MG 1) at the weekend close.
The Indian parity continued to rule above $2,600 a tonne while all other origins remained steady at previous levels.
There has not been much activity in the overseas markets. All the other origins remained firm at previous levels.
IPC Report
According to the International Pepper Community, the black pepper market showed a declining trend during the week, with the exception of Sarawak.
In India prices continued to be volatile with an indication of down trend. At the Commodity Exchange, trading was slower as indicated by the volume of trade. Futures prices eased by two per cent. Some activities were taking place in Vietnam in view of sufficient material from recent crop.
Local prices for local purchases also fluctuated during the week. On an average the local price eased marginally by 1 per cent, while f.o.b. prices were reported stable as last week. In Daklak, prices for raw material stood at VND 31,000 a kg.
Price decreased was also taking place in Sri Lanka. In Sarawak, prices were up during the week. Local prices increased marginally from MYR 7,070 a tonne to MYR 7,100 at the week’s close and fob price moved up to $2,800 from $2,700.
In Lampung, local price was unchanged, with limited activity. It is reported that Brazilian new crop in 2009 would be significantly less compared to 2008’s crop. Weather condition and lower prices in addition of diseases problems are the main factor of the decrease, it said.
WHITE PEPPER
In Bangka, local price eased two per cent to IDR 37,250 a kg. In Sarawak, prices were up marginally by one per cent both for local and f.o.b. In Hainan, prices were reported stable.
Source : Business Line