Date:09/08/2006 URL: http://www.thehindubusinessline.com/2006/08/09/stories/2006080901011300.htm

Back Pepper futures slide further

G.K. Nair

Kochi , Aug 8

Declining trend continued on Tuesday in the pepper futures market in anticipation of stock liquidation by the Kerala State Procurement Agency, Marketfed, in the coming days.

On the other hand, prices of other origins continued to rule firmer. Vietnam was offering 500 GL at $2,100 a tonne (f.o.b), while Indonesia at $2,250 a tonne f.o.b and $2,400 a tonne (c&f). Brazil is said to have done some business but at a difference, offering B1 at $1,800 (f.o.b) and ASTA grade at $2,000 a tonne (f.o.b) and $2,150 (c&f), market sources told Business Line.

The Brazilians seem to be cautious, they said. The output in Brazil is estimated to be less at 35,000 tonnes this year from the normal crop of 45,000 tonnes.

Global wait & watch

In the international market, buyers are waiting and watching in anticipation that prices will decline to expected levels.

The August contract declined by Rs 79 a quintal on NCDEX on Tuesday to Rs 10,049, while on NMCE it dropped by Rs 35 a quintal to Rs 9,900 on Monday.

The fall in other positions on NCDEX was from Rs 39 to Rs 81 a quintal. On NMCE, besides August, September and November declined by Rs 6 and Rs 48 respectively while October, December and January moved up by Rs 9, Rs 60 and Rs 35 a quintal respectively.

The total turnover on NCDEX also fell by 10,628 tonnes to 26,660 tonnes on Monday, while on NMCE it dropped by 2,270 tonnes to 4,126 tonne.

The total open interest on NCDEX was 24,058 tonnes as against 24,090 tonnes on Monday. On NMCE it was 4,434 tonnes compared to 4,431 tonnes.

Outstanding positions for August, September and October were 5,216 tonnes, 6,605 tonnes and 8,485 tonnes respectively.

The domestic market was very slow. There was aggressive selling from Kodagu at Rs 101 a kg anywhere in India. Meanwhile, the prices in Delhi dropped to Rs 98 a kg.

Anticipated liquidation by Marketfed and weak domestic demand has pushed down the spot prices by Rs 200 a quintal to close at Rs 9,600 (un-garbled) and Rs 10,000 (MG 1) a quintal on Tuesday.