The pepper market moved up on good buying support amid limited availability on Monday and all the active contracts, especially the nearby ones, increased substantially and closed much above the Saturday closing.
As the farmers were not releasing the material following the decline in prices, the buyers were covering from stockists for meeting their commitments old pepper at Rs385 - Rs390 a kg and an estimated 40 tonnes of the material were traded today, market sources told Business Line.
There was short covering in February and March, pushing up prices of these deliveries significantly.
Arrival of fresh pepper has not been taking place because of the overcast weather in Kerala’s growing areas such as Kollam, Pathanamthitta and Thiruvananthapuram districts, they said. Besides, the Sabarimala pilgrims were buying small quantity of pepper on their way back from these districts
December contract on the NCDEX moved up by Rs 55 a quintal to close at Rs 39,135 a quintal. February and March increased by Rs 560 and Rs 520 respectively a quintal and closed at Rs 35,150 and Rs 34,945 a quintal.
Total turnover rose by 1,365 tonnes to 2,083 tonnes. Total open interest decreased by 327 tonnes to close at 3,849 tonnes.
December open interest fell by 269 tonnes to 1,064 tonnes while that of February dropped by 67 tonnes to 2,186 tonnes. March moved up by eight tonnes to close at 520 tonnes.
Spot prices continued to remain steady at the previous levels of Rs37,200 (ungarbled) and Rs38,700 (MG 1) a quintal on limited activities.
Indian parity in the international market according to Dec prices was at $7,450 a tonne (c&f) Europe and $7,750 a tonne (c&f) USA. At Feb and Mar prices the parity was at $6,900 and $6,800 a tonne (c&f) respectively for Europe, they said.