Business Daily from THE HINDU group of publications
Thursday, Sep 21, 2006
ePaper


News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Agri-Biz & Commodities - Spices & Condiments
Buying interest buoys pepper futures

G.K. Nair

Marketfed auction sees sellers demanding higher price


The exporters are worried over the fact that turn over and outstanding positions on the Exchanges are said to be much more than the physical pepper available in their warehouses

Kochi , Sept. 20

Pepper futures market moved up on Wednesday on buying interest from both the domestic and international markets.

Enquiries were floating from overseas buyers in Europe and USA for Indian pepper.

However, they are said to have moved to Vietnam and Brazil due to cheaper prices there. Vietnam offered 550 GL at $3,200 a tonne (c&f) Europe and Brazil at $3,050 (f.o.b) B Asta. Indian parity was at $3,450 a tonne (c&f) Europe.

Even at the auction of Marketfed, the Kerala Government procurement agency, there were more buyers and as a result the seller was demanding a higher price.

On the other hand, the turnover and outstanding positions on the Exchanges are said to be much more than the physical pepper available in their warehouses.

Bullish sentiments

The turn over on NCDEX on Wednesday was at 43,706 tonnes, while on NMCE it was at 8,092 tonnes.

The open interest was at 28,266 tonnes on NCDEX, while on NMCE it was at 5,256 tonnes.

However, the total physical pepper available in the warehouses of both the exchanges as on September 15 was just 9,579 tonnes.

The exporters are, in fact, worried over the situation and hence not in a position to make any commitment as covering later might turn out to be difficult.

It gives the indication that the market is run on highly bullish sentiments and speculative operations.

"Switching over positions are only taking place pushing up the prices," market sources told Business Line.

The September contract (maturing today) on Wednesday on NCDEX moved up by Rs 512 to close at Rs14,261 a quintal.

As many as 1,128 tonnes of this contract, which matured today, must have been delivered, they said.

The increase in other positions on NCDEX was from Rs 499 to Rs 541 tonnes, while on the NMCE, the October contract moved up by Rs 523 a quintal to Rs 14,702 from Rs 14,179 on Tuesday.

The other positions moved up by Rs 328 to Rs 640 a quintal.

The total turn over on NCDEX dropped by 14,578 tonnes to 43,706 tonnes while on NMCE it fell by 1,598 tonnes to 8,092 tonnes from 9,690 tonnes.

The total open interest on NCDEX was at 28,266 tonnes as against 29,032 tonnes. On NMCE, it was at 5,256 tonnes compared to 5,023 tonnes.

The spot prices also moved up by Rs 200 a quintal to Rs 13,000 (un-garbled) and Rs 13,400 (MG1) on Wednesday.

More Stories on : Spices & Condiments | Commodity Markets

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Wheat import details filing directive


Arabian Sea `low' under watch for storm signs
Overcoming odds
Gold: Why is India's influence not worth its weight?
Spot rubber prices decline
Competition props up south Indian tea exports
Plea to exempt rubberised coir from ST, excise duty
Vegetable oil market likely to move lower
TN poultry farmers to get maize on concession
Fish farmers urged to explore crab culture as diversification
Buying interest buoys pepper futures
Shutters down
`Kisan mela' next month
Private trade wheat import deals top 5.5 lakh tonnes
Farm Ministry's kharif estimate paints gloomy picture


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line