Retail Customers Run for Life as Funds Enter In a Big Way In Comexes

Mumbai/30th August 2010/05 00 HRS IST

Entry of funds in Comexes in a big way scares Retail customers as the financially mighty Fund Houses Push and Pull Markets and create Volatility throughout the trading hours even when there are no takers from Domestic Market and Exporters becoming Processors for funds for the rawmaterial either they procure currently or happy enough with the handsome profits they made in the last six months and some exporters have made more than 60% of their investments and winding down the operations waiting for the next oppurtunity when Several thousand tons of Pepper will be losing Validity in the Months of October and November which cannot be revalidated and at current prices reprocesing will be a nightmare as the carry between months is hardly 1%.

Reading stories everyother day in different Business dailies which are tailor made to suit the needs of certain sections and the TV channels trying to emphasize the news they carry is what the market is and it should head to the levels they predict is making Retail Customers most of the time in two minds and many have left the arena. What we see currently is not Pepper Business but the Tug of war between some whom we do not know really in a loose regulated working of Futures Market mechanism said a veteran in the export sector for more than five decades. We have been selling the pepper we have bben collecting to one company in Cochin who are into exports ina very bigway and very active in local business since last 20 years but we are surprised by the cold approach since last 3 months and the company is not buying a kilo of pepper saying no demand all the time; but we caanot understand if thats the case why the market has moved to Inr 210-220 levels for september contract said a trader in Nedumkandam one of the main centers in Idukki for black pepper and cardamom.


Many upcountry dealers have closed their activities on pepper and only a very few left in the field who just cannot the field for reasons of their own. If the regulator is not looking seriously into the way agricommodities are traded in the national Commodity exchanges they are going to have the same fate of regional exchanges commented an ex chairman of a regional commodity bourse. Everyone is trying to shoot the golden goose and trying to take all the golden eggs together he added.

A major section of the exporters feel that they will be back to Biz after the Ramdan or mid October latest whatever be the prices at that time because by that time the inventories availability from heavy mport purchases made in June and july for July and August shipments will be available in the Processing Hub Cochin for process and buyers who have been staying away for sometime will be back to fill in for Christmas and New year.

Anonymous