The Hindu Business Line : Good demand for pepper likely

Good demand from end users overseas and other producing countries is expected in the coming days for Indian pepper because of tight physical position in the world market and the prevailing low prices in India. The US brokers were said to have traded MLSV January/February/March at $2,900 a tonne (C&F) while the prices offered for April/May/June are at $3,200 a tonne (C&F). Besides, Indonesian exporters were covering from India to meet their commitments to the US buyers.

Indications are that given the tight supply position in the world market no pressure is likely to build up till February 7 leading to a price decline, market observers here told Business Line.

MG 1 December was traded at $2,650 a tonne (C&F) while November at $2,600 a tonne (C&F). As the physical sellers have withdrawn, selling pressure was there in the exchanges on Saturday and the exporters were covering at discounted price.

The futures market was highly volatile with wide and wild fluctuations on Saturday and closed below Friday levels. The market, according to the observers, is building up for the "next bull run".

FUTURES DECLINE

November contract on NCDEX declined by Rs 321 a quintal to close at Rs 10,425 on Saturday from Rs 10,746 on Friday. The other positions also dropped by Rs 270 to Rs 367 a quintal. On NMCE, November fell by Rs 419 a quintal to close at Rs 10,100 from Rs 10,519 on Friday. The decline in other positions was from Rs 233 to Rs 308 a quintal.

The total turnover on NCDEX fell by 2,397 tonnes to close at 33,874 tonnes from 33,874 tonnes on Friday, while that on NMCE improved by 459 tonnes to close at 6,158 tonnes from 5,699 tonnes. The turnover for December on NCDEX dropped by 1,588 tonnes to 23,389 tonnes from 24,977 tonnes on Friday while that for November also fell by 461 tonnes to 7,531 tonne from 7,992 tonnes.

The total open interest on NCDEX on Saturday was up by 394 tonnes to 24,058 tonnes from 23,664 tonnes on Friday while that on NMCE declined by 26 tonnes to 5,103 tonnes from 5,129 tonnes. Spot market ruled ready at Friday's levels of Rs 10,100 (un-garbled) and Rs 10,700 (MF\G 1) a quintal at weekend close.

The outstanding position on NCDEX for November fell by 352 tonnes to 6,143 tonnes while that of December moved up by 627 tonnes to 13,060 tonnes. On NMCE, December position stood at 4,035 tonnes on Saturday.

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