Date:06/06/2006 URL: http://www.thehindubusinessline.com/2006/06/06/stories/2006060600271300.htm

Back Pepper futures market steady

G K Nair

Lack of buying support

Kochi , June 5

The pepper futures market ruled steady on Monday for want of buying support.

There was no selling pressure also. As the June delivery is nearing maturity, activities of both bulls and bears are hovering around this position. In fact, it is the cheapest delivery available during the season. But the quantity and quality of the stocks is pointed out as a matter of concern.

However, non-availability coupled with a potential future demand at $1,600-1,650 a tonne (c&f) might compel some of the exporters to takedelivery from the exchanges.

Meanwhile, a strong rupee against dollar has also gone against the exporters as it has pushed up the parity of the Indian pepper to $1,675 a tonne (c&f).

Market sources told Business Line that some interest might come up from overseas market for June/July/August in one string but nobody would be willing to sell all the three positions together.

Reported decline in production in Indonesia, which will be harvesting its new crop next month, and Brazil might have some positive impact on the demand in the coming weeks, they claimed.

The June delivery on NCDEX on Monday was up by Rs 18 a quintal to close at Rs 6,555 from Rs 6,537 during the weekend, while on NMCE, it declined by Rs 9 to close at Rs 6,535 from Rs 6,544 a quintal.

The other positions of July, August showed an increase of Rs 3 and Rs 33 a quintal on Monday, while September, October and November declined by Rs 1, Rs 16 and Rs 14 respectively. On NMCE, September and October deliveries dropped by Rs 25 and Rs 70 respectively, while the July and November positions increased by Rs 9 and Rs 60 respectively.

The total turn over on NCDEX on Monday stood at 1,768 tonnes against 838 tonnes during the weekend, while on NMCE it was 152 tonnes compared to 40 tonnes.

The total open interest on NCDEX on Monday was 19,249 tonnes compared with 19,214 tonnes on Saturday and on NMCE, it was 2,065 tonnes against 2,026 tonnes.

In the domestic market, the spot ruled steady at the last weekend close of Rs 6,500 (un-garbled) and Rs 6,900 (MG 1) a quintal. The north Indian demand is met directly from the primary markets in Karnataka and Wayanad (Kerala) at Rs 72 a kg anywhere in India, the sources alleged.