Date:13/06/2006 URL: http://www.thehindubusinessline.com/2006/06/13/stories/2006061300351300.htm

Back Pepper futures fall on liquidation

G.K. Nair

Kochi , Jun 12

Pepper futures market witnessed a further decline on Monday following liquidation.

However, the competitive Indian parity, ruled steady at $1,600-1,650 a tonne (c&f), could generate demand from the selected pockets in the overseas market, market sources here told Business Line. "Some orders can be expected in the coming days", they claimed.

However, the buyers are insisting on asking for a string of June/July/August deliveries together, which the sellers here do not seem to agree, they said.

The sources attributed the decline to liquidation by some of the players, who appeared to have changed their mind to take delivery and instead resorted to liquidation. The reason for this phenomenon alleged by them is the doubt about the quality of product.

However, June position on NCDEX was up by Rs 21 to close at Rs 6,490 against Rs 6,459 last Saturday, while on NMCE it was down by Rs 38 to end at Rs 6,385 a quintal from Rs 6,423. All other positions in NCDEX declined and the drop was from Rs 14 to Rs 50 a quintal. On NMCE, all the other positions except July, which declined by Rs 25 a quintal, moved up by Rs 19 to Rs 73.

Total turnover

The total turnover on NCDEX was 1,583 tonnes on Monday against 1,148 tonnes, while on NMCE it was 211 tonnes against 271 tonnes on Saturday.

Open interest on NCDEX was 19,072 tonnes against 19,104 tonnes while on NMCE it was 1,964 tonnes against 1,917 tonnes.

The outstanding position of June, July and August on NCDEX on Monday was 6,654 tonnes, 6,665 tonnes and 3,310 tonnes, respectively.

Spot market ruled steady and the prices remained at previous level of Rs 6,500 (un-garbled) and Rs 6,900 (MG 1) a quintal.

A liquidity crunch due to delay in payment of subsidy and refund of sales tax said to have negatively affected the buying activities of medium exporters, they said.