Futures Pepper Prices Decline, NCDEX Pepper Trading Lost Early Session

Pepper futures prices on Tuesday declined marginally as speculative long position holders resorted to liquidation to get out of the market.

Investors who have been selling validity expired and farm grade pepper stocks were buying back their sales. Exporters were also covering. But the activities were limited. There was no switching over as the ?badla? has narrowed down, market sources told Business Line.

There was no activity in the ready pepper market in the absence of sellers.

Nov contract on the NCDEX declined by Rs 40 to close at Rs 34,330 a quintal. Dec and Jan dropped by Rs 85 and Rs 45, respectively, to close at Rs 34,705 and Rs 34,980 a quintal.

Total turnover fell by 1,122 tonnes to 4,289 tonnes. Total open interest dropped by 431 tonnes to 11,593 tonnes.

Nov open interest decreased by 509 tonnes to 1,765 tonnes, while that of Dec moved up by 103 tonnes to 9,108 tonnes and Jan declined by 17 tonnes to 524 tonnes.

Spot prices remained unchanged today also at Rs 32,800 (ungarbled) and Rs 34,300 (MG 1 ) a quintal on limited activities.

Indian parity in the international market was at $7,300-7,350 a tonne (cf) Europe and $7,600-7,650 a tonne (cf) for the US, and remained very much in line with other origins especially Vietnam which is closely following the Indian futures market trend. All are on a wait-and-watch mode in the overseas markets. At present, availability is believed to be in India and Brazil, while the position in Pepper futures rose Wednesday due to thin supply in the physical markets and limited stocks from the fresh crop.

At NCDEX Pepper December contract is trading at Rs.34590 per quintal, up by 0.53 per cent 16:05 IST against the previous close.

In the early sessions the contract traded at a range of Rs.34195-34685 per quintal. Open interest of the contract is 1578 lots and volume traded is 390 lots for the time being.

Reports that Pepper crop in 2011-12 might fall below last year level of 48,000 tonnes is supporting pepper prices. It expected to be in the range of 42-44 thousand tonnes.

Lower stocks with Vietnam and Indonesia, the major suppliers of pepper will also support prices.

According to Spices Board of India, exports of pepper during April 2011- September 2011 stood at 11,250 tonnes as compared to 9,250 tonnes in 2010-11, rise of 22%.

Pepper futures rose Wednesday due to thin supply in the physical markets and limited stocks from the fresh crop.

At NCDEX Pepper December contract is trading at Rs.34590 per quintal, up by 0.53 per cent 16:05 IST against the previous close.

In the early sessions the contract traded at a range of Rs.34195-34685 per quintal. Open interest of the contract is 1578 lots and volume traded is 390 lots for the time being.

Reports that Pepper crop in 2011-12 might fall below last year level of 48,000 tonnes is supporting pepper prices. It expected to be in the range of 42-44 thousand tonnes.

Lower stocks with Vietnam and Indonesia, the major suppliers of pepper will also support prices.

According to Spices Board of India, exports of pepper during April 2011- September 2011 stood at 11,250 tonnes as compared to 9,250 tonnes in 2010-11, rise of 22%.