High Volatility Keeps Indian Pepper Away From Demand (08-Mar-2010)
Following the strengthening of the rupee against dollar, the Indian pepper remained out priced in the world market, despite falling trend in the futures market.
As a result, there has been no flow of demand to India.
However, it is directed to other origins like Vietnam and Indonesia, who have been meticulously keeping a watch on the Indian futures market and accordingly quoting below the Indian parity in order to corner the overseas demand.
There has been a tug-of-war between the bull and bear operators due to the high volatility in the futures market and the market manipulators is allegedly helping the other origins in order to benefit depriving the Indian pepper, sources said.
They said the high volatility was experienced in the market at a time when the fundamentals remained unchanged.
Moreover, they said that small and medium players are hurt by this phenomenon who are even thinking of abandoning the trading in pepper.
During the week, March, April and May contracts declined by Rs 56, Rs 67 and Rs 118 respectively to Rs 12,800, Rs 13,047 and Rs 13,250 a quintal at the weekend close.
Meanwhile, the total turn over fell by 610 tonnes during the week to 24,003 tonnes. The total open interest surged by 425 tonnes to 10,070 tonnes on Saturday. While, the apot prices remained unchanged at Rs 12,600 (ungarbled) and Rs 13,100 (MG 1) from the previous weekend close.
Besides this, the spot prices under the influence of the futures market trend, have been on the decline, despite a strong domestic demand.
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