The Hindu Business Line : Selling pressure casts shadow on pepper futures

Though the reports of Brazil lowering its prices coupled with the NCDEX circular directing its members and their clients to reduce their positions have pulled down the prices in the early trading, it moved up later at close on Thursday, market sources told Business Line.

The September contract was up by Rs 120 on NCDEX to close at Rs 11,685 a quintal from Rs 11,565 on Wednesday. On NMCE, it moved up by Rs 81 to close at Rs 11,484. The increase on NCDEX for other positions was from Rs 131 to Rs 214 a quintal, while on NMCE, it was from Rs 100 to Rs 205 a quintal for all positions except for February, which declined by Rs 61 a quintal.

Turnover drops

The total turnover on NCDEX dropped by 10,547 tonnes to close at 36,529 tonnes from 47,076 tonnes on Wednesday. On NMCE, it fell by 1,892 tonnes to 6,495 tonnes from 8,387 tonnes. The total outstanding position on NCDEX on Thursday stood at 25,872 tonnes as against 25,772 tonnes while on NMCE it was at 4,919 tonnes compared with 4,837 tonnes. The outstanding position for September and October on NCDEX was 3,666 tonnes and 16,270 tonnes respectively while on NMCE for October it was 3,712 tonnes.

Harvest

Brazil, which was selling at $2,200 a tonne (fob) said to have reduced its prices later. Indonesia continued to remain firm at $2,625 a tonne (c&f) as against the Indian parity of $2,600 a tonne (c&f). In Indonesia, the harvesting said to have completed and the entire quantity estimated at between 12,000 and 5,000 tonnes, "is in strong hands," which are not offering fresh. Meanwhile, it is understood that in Brazil harvesting will start in full swing in October. What they have been offering is the early arrivals mixed with carry over stock. Using this stock they are briskly covering earlier sales for August/September/October.

NCDEX has issued a circular restricting the near month position limits of its members and clients for pepper to 3,000 tonnes and 1,000 tonnes respectively and this has also influenced the market. There was virtually no domestic demand. Spot prices, however, ruled steady at yesterday's level at Rs 10,500 (un-garbled) and Rs 10,900 (MG 1) respectively on Thursday.

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