Back Buying interest helps pepper futures recoup
G.K. Nair
Kochi, Aug. 24
Pepper futures market, after falling continuously in recent days, bounced back on Friday on rumours that the FMC would relax the nearby month position.
Consequently, there was some buying interest.
However, the buyers were not keen to buy distant positions.
They are concentrating on the first three deliveries.
It is reflected in the transactions and the net open positions, market sources said.
Meanwhile, international players based in the European Union were spreading rumours that the markets in Brazil and Vietnam crashed and the prices would fall further.
“It is a game plan by those who want to cover,” market observers here told Business Line.
Vietnam was offering 500 GL at $3,170 a tonne (f.o.b.), while 550 GL at $3,330 a tonne (f.o.b).
Brazil was quoting B Asta at $3,250-$3,300 a tonne (f.o.b.), while B 1 at $3,200 a tonne (f.o.b).
The Indian parity on Friday has moved up to $3,375-$3,400 a tonne (c&f) and remained competitive.
CONTRACT POSITION
September contract on NCDEX, on Friday, moved up by Rs 172 a quintal to Rs 12,410 from Rs 12,238 on Thursday.
The increase in other contracts was from Rs 181 to Rs 232 a quintal.
On NMCE, September contract increased by Rs 219 a quintal to Rs 12,280.
The increase in other contracts except November was from Rs 137 to Rs 256 a quintal. November contract fell by Rs 140 a quintal.
Turnover up
Total turnover on NCDEX increased by 2,653 tonnes to 25,126 tonnes.
Transactions for September, October and November increased by 23 per cent, 66 per cent and 6 per cent, respectively.
On NMCE, total turnover declined by 47 tonnes to 2,040 tonnes.
Open interest
Total open interest on NCDEX dropped by 516 tonnes to 23,070 tonnes.
September position fell by 38 per cent, while October by 45 per cent.
However, November moved up by 5 per cent.
On NMCE, total open interest increased by 69 tonnes to 2,292 tonnes.
September and October positions were at 601 tonnes and 1,545 tonnes, respectively.
Spot prices
Spot prices ruled steady at previous levels on Friday at Rs 12,300 (ungarbled) and Rs 12,900 (MG 1) a quintal.
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