The Hindu Business Line : Buying support props up pepper

“In fact, the market has corrected itself and come out of the discounted levels to realistic levels,” market observers told Business Line. The futures have now come in line with the ready and spot prices. There were buye rs for good quantity while the sellers were very much limited and this phenomenon pushed up the prices.

In the international scenario, Vietnam is said to have increased its prices for farm grade pepper. However, the future trend would depend on how Brazil reacts to the Indian prices, they said.

The trend in the other origins would be known on Tuesday when the buyers re-open after the weekend.

CONTRACT POSITION

August contract on NCDEX on Monday shot up by Rs 451 to Rs 13,435 a quintal last Saturday. Increase in other contracts was from Rs 407 to Rs 498 a quintal. On NMCE, August contract increased by Rs 407 to Rs 13,325. The rise in other contracts was from Rs 150 to Rs 388 a quintal.

Total turnover also shot up on NCDEX by 11,924 tonnes to 26,016 tonnes, while on NMCE it moved up by 1,017 tonnes to1,946 tonnes.

The total open interest on NCDEX moved up by 124 tonnes to 25,312 tonnes. August position fell by 579 tonnes to 3,807 tonnes. September and October increased by 466 tonnes and 128 tonnes respectively to 12,442 tonnes and 5,864 tonnes.

On NMCE, the total open interest moved up by 58 tonnes to 2,497 tonnes. August position declined by 52 tonnes to 491 tonnes.

Spot prices, in tandem with the futures market trend, went up by Rs 200 a quintal on Monday to close at Rs 13,100 (un-garbled) and Rs 13,700 (MG 1).