The Hindu Business Line : Pepper futures market recovers on buying support

Kochi, Oct. 16 The pepper futures market, which was on a downward trend in the morning, recovered in the afternoon and closed above Wednesday’s price. Good quantity of pepper is said to have been traded at discount price. Investors were buying back their sales. Domestic buyers as well as exporters were actively buying to meet their commitments at prices below the spot prices.

The quality of the material is said to be superior to farm grade pepper. Validity expired goods were also being traded. Domestic buyers were also active as the grinding season has begun after the rains and the industry has been aggressively buying.

Thus, on good buying support, the futures prices moved up. October contract increased by Rs 116 to close at Rs 12,712 a quintal. November and December went up by Rs 150 and Rs 139 to close at Rs 12,780 and Rs 12,918 a quintal respectively. All the three contracts closed much below the spot price of MG 1, market sources told Business Line.

Total turnover on NCDEX dropped by 549 tonnes to close at 7,341 tonnes. Total open interest also fell by 409 tonnes to 16,586 tonnes. NOP for October dropped by 593 tonnes to 2,487 tonnes while November declined by 321 tonnes. December moved up by 372 tonnes.

Global tab

In the international market, buyers were keeping away because of the current financial crisis and the declining trend in stock markets. Indian parity remained competitive at $2,900-$3,000 a tonne (c&f). Strengthening of the Brazilian currency has raised the prices of B Asta. Brazil was offering B Asta at $2,650-$2,700 a tonne. When the processing and transportation costs are added, it would come to $3,000-$3,050 a tonne (c&f).

Spot prices

Spot prices remained unchanged at Wednesday’s levels at Rs 12,700 (un-garbled) and Rs 13,300 (MG 1) a quintal on Thursday.

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