The Hindu Business Line : Pepper futures remain bearish

Kochi, July 8 The pepper futures market continued its downward swing on Wednesday on bearish operations and closed marginally below Tuesday’s closing.

There was no demand either from overseas or from the domestic market as the buyers were keeping away from the declining market. Activities were very much limited and as a result the turnover has fallen sharply by 1,604 tonnes to close at 1,703 tonnes.

July net open position dropped by 226 tonnes, while that for August and September moved up by 172 tonnes and 45 tonnes respectively showing a switchover to these positions, market sources told Business Line.

July contract on NCDEX dropped by Rs 42 to close at Rs 12,122 a quintal, while that of August and September declined by Rs 36 and Rs 18 respectively to close at Rs 12,288 and Rs12,411 a quintal. Total open interest declined by 7 tonnes to close 6,550 tonnes.

International

In the international market Indian parity continued to remain not competitive at $2,650 a tonne (c&f).

However, of late, the difference between the prices of Indian pepper and that of other origins has narrowed down to around $200 a tonne.

According to a reliable report from Vietnam has shown that it has already exported 2,515 tonnes of pepper to India during January-May 2009 and, according to trading sources here, much of it is feared to have entered the domestic market and allegedly depressed the domestic market.

Since it has already exported about two-thirds of its crop, Vietnam has not been too aggressive of late on black pepper. Indonesia will consider slightly lower bids though, another overseas report said. Prices quoted per tonne C&F New York for different origins were MG 1 Asta $2,650-2,750; Lampong Asta $2,400; Vietnam Asta $2,475; Vietnam 500 GL $2,100 (fob); 550 GL $2,225 (fob) and Brazil Asta $2,425-2,450 (fob) nominal quote and Ecuador Asta $2,525 (very limited quantity). Vietnam white pepper was offered at $3,550-3,600 a tonne (c&f).

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