The Hindu Business Line : Pepper market could rule firm

Pepper futures market improved during the weekend on speculative buying support from bulls and good demand for spot from exporters. Exporters having commitments were covering even though there was no fresh demand. Besides, the rupee weakened against the dollar contributing positively to the market trend.

International market trend also contributed to the increase in futures prices. Indonesia is said to have conducted some business for August/September/October at $1,800 (c&f).

Meanwhile, white pepper prices soared and Indonesia is reportedly concentrating on white pepper. Vietnam has reduced its price to $1,850- $1,875 a tonne (c&f), while Indian parity is at $1,825-$1,850 a tonne (c&f).

Lankan Pepper

Given this scenario the market might remain firmer, market sources told Business Line. However, the only threat now is the likely flooding of Indian market with Sri Lankan pepper.

Already, few containers have been transacted at $1,575-$1,600 a tonne. July delivery was up by Rs 100 on NCDEX on Saturday to close at Rs 7,615 a quintal , while on NMCE it was down by Rs 266 a quintal to close at Rs 7,631 a quintal from Rs 7,897. All other positions on NCDEX moved up by Rs 31 to Rs 93 a quintal, while on NMCE the increase was from Rs 72 to Rs 125 a quintal.

The outstanding position for July and August at NCDEX was 2,930 tonnes and 6,978 tonnes, respectively, while on NMCE, it was 11 tonnes and 1,284 tonnes, respectively, on Saturday. There were no spot sellers.

The spot prices ruled steady at previous levels at Rs 7,350 (un-garbled) and Rs 7,750 (MG 1) a quintal.