Date:29/05/2006 URL: http://www.thehindubusinessline.com/2006/05/29/stories/2006052900120700.htm

Back Positive trend building for pepper

G K Nair

Kochi , May 28

Continued bull liquidation pushed the futures market further down on Saturday.

Good pressure to liquidate Sri Lankan pepper by stockists, especially in Delhi, had a negative impact on the futures market, trading sources here told Business Line. The stockists and importers are clearing the stocks of imported Sri Lankan pepper for alleged fear of some inquiry, they said.

The downward trend in the futures has prompted the buyers to hold back anticipating further decline. At the same time, there was no selling pressure from the primary markets in Wayanad and Idukki in Kerala and Karnataka centres.

Meanwhile, some export business had taken place during the week with the US. Stray lots were traded at $1,650 a tonne.

SELLING PRESSURE EASING

A positive trend is said to be building up in the international market now following the easing of the selling pressure in Vietnam, which had also raised its price in recent days. Availability of pepper in Indonesia and Brazil is said to be almost nil while the new crop of the former would arrive in the market only in Jul/Aug.

at NMCE. Drop in futures prices during the past two days has had its impact on the spot prices, which has declined by Rs 50 a quintal on Saturday to close at Rs6,650 (un-garbled) and Rs7,050 (MG 1).