Date:19/05/2006 URL: http://www.thehindubusinessline.com/2006/05/19/stories/2006051900511300.htm

Back Pepper futures decline on bull liquidation

G K Nair

Kochi , May 18

The pepper futures market witnessed a decline on bull liquidation as the May delivery is nearing maturity.

At NCDEX, May position fell sharply by Rs 111 a quintal to Rs 6,490 from Rs 6,601 on Wednesday while at NMCE, the drop was Rs 44 to close at Rs 6,837 (Rs 6,881) a quintal.

Some of the investors did not show interest to switch over to other positions.

Demand is also not forthcoming. The total outstanding position continued to remain at higher level, which is not a healthy sign, market sources told Business Line.

The outstanding position on Thursday for June was 9,497 tonnes while that of July was 5,896 tonnes. "It has never been above 2,500 tonnes," they claimed.

There has been no selling pressure in spot notwithstanding the prices dropped by Rs 50 a quintal, probably in tandem with the decline in the futures.

Demand is not forthcoming from overseas as the buyers are anticipating that the price might fall. For the time being the picture does not seem to be encouraging, they said.

The decline in other positions at NCDEX was from Rs 55 to Rs 92 a quintal whereas at NMCE, it was from Rs 10 to Rs 65 a quintal.

The total turnover at NCDEX on Thursday was 3,485 tonnes (2,458 tonnes) while in NMCE, it was 212 tonnes (190 tonnes).

Open interest at NCDEX on Thursday was 22,264 tonnes (22,246 tonnes) where as at NMCE, it was 2,386 tonnes (2,427 tonnes).

Spot prices dropped by Rs 50 on Thursday to Rs 6,600 (un-garbled) and Rs 7,000 (MG 1) a quintal.