Date:24/04/2006 URL: http://www.thehindubusinessline.com/2006/04/24/stories/2006042400620700.htm

Back Pepper futures could gain

G.K. Nair

Kochi , April 23

Stable spot prices in the absence of selling pressure coupled with some visible buying interest in the pepper market, might result in some upward swing the futures prices in the coming days.

The market witnessed some corrections on Saturday after the decline of around Rs 300 a quintal on Friday in the prices for April contracts, market sources told Business Line. "Unless there is drastic liquidation by the bulls who are holding long positions the futures prices are expected to move up," they said.

Those having short positions might buy back if the commodity is available at prices cheaper than that of the spot, provided there is no deterioration in quality and decline in weight, they said. "Badla" might take place, they said.

DULL GLOBAL MARKET

There is dullness in the international market also as the players are waiting for the prices to drop. Vietnam the major producer appears to have exported substantial quantity of its current crop. Hence, no aggressive selling is seen there.

However, some business has taken place here also after the Easter holidays though not very aggressive.

International prices (c&f) on Saturday were India $1,675 a tonne, Vietnam $1,500, Indonesia $1,650, Brazil $1,650 and Malaysia $1,700 a tonne.

Spot prices ruled steady at last week's level. MG 1 was sold at Rs7,150 a quintal and un-garbled at Rs6,750 a quintal.

There is good domestic demand, but it is met directly by supplies from Karnataka by evading tax, they alleged.