The Hindu Business Line : Pepper futures rebound

Pepper futures witnessed an upward trend on buying support on Friday. The bearish sentiments, which gripped the market in the past few days, seem to have been unable to sustain. There were no sellers for both futures and spot.

All the positions on NCDEX and NMCE rebounded. The increase in the former was from Rs 168 to Rs 232 a quintal, while on the latter it was from Rs 60 to Rs 244 a quintal. Besides, unconfirmed reports that MG 1 was bought at Rs 10,200 a quintal on NCDEX and even above this level pushed up the prices, market observers told Business Line.

Availability scarce

Depending upon the variety prices also differ. Availability of good quality bold pepper continues to be scarce even in the districts of Idukki and Wayanad, they claimed.

However, stocks available with the national multi-commodity exchanges and that would help the exporters to cover. But, they are not ready to sell it to exporters directly, the observers pointed out.

Indonesian prices remained unchanged at $2,350 - $2,400 a tonne, while Brazil was offering Grade -1 560 GL at $1,700 a tonne, BL ASTA at $1,750 a tonne and Gr.2 500 GL at $1,600 a tonne (all FOB). Vietnam ASTA was being offered at $2,400 a tonne (c&f), while 500 GL FAQ at $1,825 and 550 GL $1,900 a tonne (f.o.b). Indian parity is at competitive rates at $2,350 - $2,375 a tonne (c&f).

Spot prices steady

August contract went up on NCDEX on Friday to close at Rs 10,279 from Rs 10,047 on Thursday, while on NMCE it closed at Rs 10,025 from Rs 9,840 a quintal. The total sales turn over on NCDEX dropped to 37,991 tonne from 68,783 tonne. On NMCE it fell to 4,317 tonne from 8,352 tonne on Thursday.

The total outstanding position for August, September and October was 5,870 tonne, 6,248 tonne and 8,653 tonne, respectively, on Friday. Spot prices, however, ruled steady at previous levels at Rs 9,800 (un-garbled) and Rs 10,200 (MG 1) a quintal.