The Hindu Business Line : Dip continues in pepper futures

Declining trend continued in the pepper futures market on liquidation of futures by long operators and rumours that 500 bags of fresh pepper would be arriving at the terminal market. But, there were no such arrivals.

Some switched over to other positions. There was also fresh a buying for Jan/Feb.

Even investors, who were ready to buy NCDEX delivered fresh pepper at Rs 99 a kg, were not ready to pick up the commodity from the exchange itself at Rs 97 a kg, market observers here told Business Line. Indian parity was at $2,475 a tonne.

According to them, Vietnam new pepper is unlikely to arrive in the market till late February, while full swing harvesting there would start only by April. December contract on NCDEX dropped by Rs 101 a quintal to close at Rs 9,700 on Monday. The decline in other positions was from Rs 59 to Rs 146 a quintal.

On NMCE, January contract fell by Rs 115 a quintal to Rs 9,435. The fall in other positions was sharp from Rs 128 to Rs 425 a quintal.

Turnover rises

The total turn over on NCDEX moved up on Monday by 5,562 tonnes to 16,307 tonnes. On NMCE, it increased by 322 tonnes to 1,275 tonnes.The total open interest on NCDEX went up by 209 tonnes to 22,485 tonnes. The December net open position dropped by 413 tonnes to 1,789 tonnes. However, January and February positions increased by 246 tonnes and 236 tonnes to 11,736 tonnes and 4,710 tonnes respectively. The March position moved up by 124 tonnes to 2,823 tonnes.

On NMCE, the total open interest went up by 23 tonnes to 3,295 tonnes, while January position was up by 51 tonnes to 1,002 tonnes. The March position here was down by 45 tonnes to 2,067 tonnes.

Spot declines

The spot prices, in tandem with the futures market trend, fell by Rs 100 a quintal to close at Rs 9,200 (un-garbled) and Rs 9,800 (MG 1) on Monday.

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