Last week, the pepper market witnessed the same volatility as last week. The volatility seems to have been created by short positions showing high turnover and as the price of the futures is trading down early in the week and inching up later in the day closing slightly down from the close. last weekend.
Total outstanding positions were at 983 tonnes on Saturday. The shares at the exchange are said to be “0” tons.
Those with long positions, with commitments and hedging on the exchange, are now anticipating delivery. But, in the absence of stock, deliveries appear to be difficult and so they may have to settle for some at a fraction of the price, market sources told Business Line. “Everything is on paper, not pepper,” they said.
Short holders who tried to pull the market down are buying back in. Spot prices and futures prices did not converge.
At the end of the week, the May contract fell by Rs 155 to Rs 35,345 per quintal (equivalent to $6,500 per ton). Total trading volume fell 1,217 tonnes to 1,655 tonnes. Total open interest fell by 192 tons to 983 tons.
Spot prices, in tandem with the futures market, also fell Rs 300 per quintal to Rs 34,200 per quintal ($6,289 per ton) for bucket pepper and Rs 35,700 per quintal ($6,565 per ton) for select pepper. MG1. (1 USD = 54,380 Rupees)
On the spot, fresh-season pepper is delivered daily in average volume and all have been traded on the street at an average price of Rs 342 – 346/kg last week.
According to trade, all domestic markets are empty as they are buying immediately in the hope that the price will drop. Karnataka has sold lower weight 510 – 520 GL at Rs 310 – 320/kg and delivered anywhere in India.
In an attempt to tap pepper demand from some domestic markets, pepper was allegedly blended with lower grade pepper from several centers in Kerala Ernakulam district and sent by rail to the Northern markets. India.
Meeting of IPSTA
Overseas buyers are asking for pricing for June/July/August. But, since the prices are not listed on the exchange and therefore cannot trade these futures contracts, exporters are also unable to give any indication of prices.
The meeting of IPSTA (Indian Spices and Pepper Trade Association) was held on Wednesday evening and according to sources, “everybody expressed the opinion that IPSTA should use regional-specific commodities. to enable commercial help. In addition, they claim, all quality parameters of IPSTA are in accordance with the requirements of the Food Safety Authority and will therefore receive the authorization of the Futures Market Commission. Delegates also suggested that deposits per trading unit should be raised to Rs 10,000 per tonne as frost was increasing. “
At the end of the week, the price of Indian specialty pepper in the international market was at $6,800/ton (c&f) for prompt delivery and $6,700/ton for May deliveries.
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