Date:26/07/2006 URL: http://www.thehindubusinessline.com/2006/07/26/stories/2006072600061700.htm

Back Uptrend persists in pepper futures

G.K. Nair

Tight global supply influences market; current rise on speculation

Kochi , July 25

The pepper futures market continued its upward trend with all the future contracts shooting up by over Rs 500 a quintal.

The prevailing tight supply position in the world market has influenced the market.

Indonesia, which is in the process of harvesting, does not want to sell. Hence, availability has become very tight, market sources told Business Line. On the other hand, the higher prices of white pepper following severe shortage seems to have forced those producers of white pepper to buy black at any cost. Given this scenario, on the assumption that market would move up there are no sellers now.

Besides, unconfirmed reports said that some big international players have already cornered substantial quantity of black pepper from Indonesia. However, the current rise is on speculation as no fresh demands have been reported, they said.

Future contract up

The August contract shot up by Rs 517 on NCDEX to close at Rs 9,385 a quintal from 8,868 tonne on Monday, while on NMCE it increased by Rs 542 to close at Rs 9,579 from Rs 9,037 on Monday.

The increase in other positions on NCDEX was from Rs 526 to Rs 549, while on NMCE it was from Rs 553 to Rs 925 a quintal.

Turnover up

The total turnover on NCDEX went up by 8,305 tonnes to 31,334 tonnes from 23,029 tonnes on Monday. On NMCE, it went up to 5,366 tonnes from 4,774 tonnes.

The total open interest on NCDEX was 18,403 tonnes against 18,231 tonnes on Monday, while on NMCE it increased to 4,101 tonnes from 3,971 tonnes. The outstanding position for August, September and October was 6,929 tonnes, 3,835 tonnes and 5,015 tonnes, respectively.

The spot prices also continued its upward swing. It shot up by Rs 300 a quintal to close at Rs 8,600 (ungarbled) and Rs 9,000 (MG 1).