Last Updated : June 17, 2010 13:40
Sharp fall seen in Pepper
The pepper futures on NCDEX fell sharply on Wednesday on account of strong selling pressure backed by weak buying interest in the spot market.
The trade activity in the spot market remained subdued because of active rainfall in Kerala. Lack of buying interest in the spot market from domestic traders and exporters kept the prices under pressure.
The active July contract pepper futures tested an intraday low of Rs.15838 per quintal from a high of Rs.16210 per quintal and settled at Rs.15876 per quintal, declining by 1.81%.
Outlook
The pepper futures are expected to continue its downtrend during the day due to lack of buying interest in the spot market
Due to active rainfall in many parts of India, the trade activity has become sluggish
Indian pepper in international market is quoting at $1.74/lb, Vietnam is offering at $1.66/lb and Brazil at $1.70/lb
According to IPC, during first 5-montho of CY2010, Vietnam exported 60,000 tonnes of pepper and left with 40,000 tonnes for rest of the year
Harvesting in Indonesia and Brazil is likely to be delayed by one-month, which might divert importing nations to India Indonesia and Brazil harvesting will commence in July and September, respectively
The open interest in most active July contract increased by 3.78% to 11098 tonnes and volume rose by 58% to 6116 tonnes
The rise in open interest and volume along with fall in price is indicating further weakness in pepper fu-tures market
The NCDEX warehouse stock increased to 4160 tonnes on 15th June from 4008 tonnes reported on 14th June 2010
Courtesy: Karvy Commtrade Ltd.
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