Date:05/06/2006 URL: http://www.thehindubusinessline.com/2006/06/05/stories/2006060500060700.htm

Back Pepper futures fluctuate

G.K. Nair

Kochi , June 4

The pepper futures market fluctuated during the week and ruled steady at the weekend.

There was some buying interest and some business has taken place during the week at $1,600 - Rs1,625 a tonne (c&f).

Meanwhile the rupee gained against dollar pushing up the Indian parity to $1,675 a tonne on Saturday.

Enquiries from US are there but the buyers do not seem to follow this rate as some of the exporters were ready to offer cheaper, market sources told Business Line. There is no selling pressure in the spot.

Some of the exporters appear to be ready to take the risk to take delivery from the exchange at Rs 6,550 a quintal as against the current spot price of Rs 6,900 a quintal, for re-processing and export. Export demand is there provided the quality is maintained, they said.

Since Vietnam had already exported substantial quantity during the year the second half of the year might witness an upward price trend, according to international market sources. The current visible patience and lack of aggressiveness of Indonesia, which will have its new crop month, sends out signals of a potential improvement in the prices. A similar attitude is seen in Brazil also. Vietnam price is said to be matching the MG1.

There is good domestic demand but it is met by direct sales from Karnataka at Rs 72 a kg anywhere in India.