Date:16/05/2006 URL: http://www.thehindubusinessline.com/2006/05/16/stories/2006051600181300.htm

Back Marketfed sale move hits pepper futures

G K Nair

Kochi , May 15

Pepper futures market witnessed a decline today on the Kerala State procurement agency Marketfed's announcement of auctioning of 1,589 tonnes of ungarbled black pepper on Tuesday.

May position was down and it has pulled down the prices of all other positions, market sources said. May position dropped by Rs 75 a quintal on NCDEX to Rs 6,580 on Monday from Rs 6,655 last Saturday, while on NMCE it declined by Rs 94 to Rs 6,620 from Rs 6,714 a quintal.

Discounted prices

Surprisingly there are no buyers for stocks lying at exchanges even after being offered at discounted prices, they said.

Marketfed has also indicated that domestic players could also participate in the auction besides allowing selection of lots. The price trend would depend on the buying interest of the dealers at Tuesday's auction of Marketfed, they said.

The international market position would be known tomorrow, they said adding the Indian parity is at $1,675 a tonne (c&f) slightly higher than the prices of other origins. The last trading Price (LTP) on NCDEX for other positions showed a decline ranging from Rs 81 to Rs 102 a quintal, while on NMCE it was from Rs 10 to Rs 37 a quintal.

Turnover

The total turnover on NCDEX was 4,198 tonne as against 4,891 tonne on Saturday, whereas on NMCE it was 433 tonne on Monday compared to 580 tonne on Saturday.

The open interest on NCDEX on Monday was 22,498 tonne as against 22,432 tonne on Saturday, while on NMCE it was 2,587 tonne compared to 2,554 tonne.

However, the spot prices ruled steady at last Saturday's level of Rs 6,650 (ungarbled) and Rs 7,050 (MG 1) a quintal.