Date:27/05/2006 URL: http://www.thehindubusinessline.com/2006/05/27/stories/2006052700371300.htm

Back Pepper futures fall

G.K. Nair

Liquidation by bulls

Kochi , May 26

Pepper futures market dropped on bull liquidation on the fear of further decline in the price of the commodity. The bulls are said to have liquidated based on an astrological prediction that the prices might fall after May 25, market sources said.

There are no sellers of spot pepper despite the buyers ready to procure at Rs 70 a kg in Karnataka and Rs 69 a kg in Wayanadu.

As the rupee remains weaker against dollar, the difference between Indian parity and that of other origins has narrowed down, the sources told Business Line.

June delivery was down by Rs 117 a quintal on NCDEX on Friday to close at Rs 6,781 from Rs 6,898 on Thursday, while on NMCE, it fell by Rs 108 to close at Rs 6,726 as against Rs 6,834 a quintal.

Other positions fall

The fall in all other positions was from Rs 88 to Rs 116 a quintal on NCDEX, while on NMCE it was from Rs 80 to Rs 93; except for September and November, both have shown an increase of Rs 15 and Rs 131 quintal respectively.

In the international market, ASTA grade is being offered now at $1,600 a tonne (c&f) as against the Indian parity of $1,675 a tonne (c&f). Other major producers are holding at the previous levels of $1,600-1,650 a tonne.

Meanwhile, Europe is said to have shown interest to buy nearby positions because of a strong euro. There is a favourable situation at present for the Indian produce given its competitive price. However, the international players are waiting anticipating a further drop in Indian prices taking into account the downward trend in the pepper futures.