- Pepper futures witnessed its usual high volatility Monday and went up on overseas bullish reports which activated the speculators, market sources said.
- Indian pepper production this year is likely to be lower because of deficient monsoon rains in Wayanad and diseases such as “yellowing of the leaf and quick-wilt”, a farmer told Business Line.
- According to him there would be a decline of 30 to 40 per cent. Wayanad produces around 10,000 tonnes of pepper, he said.
- There was no trading on the spot as the buyers were on a wait and match mode.
- Spot prices went up by Rs 200 to close at Rs 19,900 (ungarbled) and Rs 20,400 (MG1) a quintal. Some north Indian stockists who had bought pepper at lower rates were said to be showing interest to sell.
- Indian parity in the international market was at $4,675 – $4,700 a tonnes (c&f) and remained out-priced.
- Meanwhile, an overseas report from Vietnam has quoted FAQ 500 GL at $4,050 a tonne (fob) and FAQ 550 GL at $4,290 a tonne.
- White pepper double washed was offered at $6,090 a tonne. Other market trends would be known by tomorrow.
Gold May Climb to Record on Concern European Banks May Need Extra Funding
Gold, which traded little changed, may advance to a record on concern among investors that some European banks may struggle to raise additional funds, increasing the appeal of the metal as a means to protect wealth.
- Immediate-delivery bullion climbed as much as $1.25 to $1,251.30 an ounce, about 1.1 percent less than the all-time high of $1,265.30 reached in June, before trading at $1,249.45 at 11:15 a.m. in Seoul. Gold for December delivery was little changed at $1,251.20 on the Comex in New York. Comex floor trading was closed yesterday for the Labor Day holiday.
- The euro fell today after the Association of German Banks said that the nation’s 10 largest lenders, including Deutsche Bank AG, may need about 105 billion euros ($134 billion) in fresh capital because of new regulations. The Wall Street Journal also reported that Europe’s recent “stress tests” on the strength of major banks understated some lenders’ holdings of potentially risky government debt.
- UniCredit SpA’s Jochen Hitzfeld, the most accurate gold forecaster tracked by Bloomberg in the last three quarters, yesterday raised his estimate for the average price next year by 12 percent to $1,400 an ounce, citing Chinese demand. In 2012, bullion will average $1,600 an ounce, Munich-based Hitzfeld said in a report
