Date:29/08/2007 URL: http://www.thehindubusinessline.com/2007/08/29/stories/2007082952261100.htm

Back Pepper futures continue to dip

G.K. Nair

Kochi, Aug. 28

Pepper futures market continued its sharp fall on Tuesday on alleged market manipulations by bear-cartels.

The futures prices have fallen by Rs 7 to Rs 10 a kg below the spot and it gives the impression that the price risk management and the price discovery system seems to have gone haywire, market observers told Business Line.

Because of the quantity restrictions on the nearby month position those who are holding long positions are said to be in trouble. The exporters wanted to cover but cannot do so as it would go beyond the 170-tonne limit.

Global markets

Indonesia has brought down the prices of its L Asta to $3,150 a tonne (f.o.b.) and Brazil was offering B Asta at $3,250-$3,300 a tonne (f.o.b). Indian parity on Tuesday was $3,250-$3,300 a tonne (c&f).

September contract, on NCDEX, on Tuesday dropped by Rs 202 a quintal to close at Rs 11,680 from Rs 11,882 on Monday. The drop in other contracts was from Rs 159 to Rs 280 a quintal.

The total turnover on NCDEX moved up by 107 tonnes.

Spot market remained closed on account of Sree Narayana Guru Jayanti. Spot prices at last closing were at Rs 12,100 (un-garbled) and Rs 12,700 (MG 1).