The pepper futures market on Tuesday gained marginally after remaining highly volatile on buying support amid tight availability.
There was no selling pressure of physical pepper while investors were keen to buy, given the tight availability of the commodity in the country. Imports have also become unviable because of the continued fall in the value of rupee against the dollar, trade sources said.
Meanwhile, those having commitments and hence wanted to cover were making concerted efforts to pull the prices down. It was evident from the tug of war on the exchange platform pushing up and pulling down the prices by both the groups, market sources told Business Line.
There was domestic demand from industry buyers as they have to grind and pack the masalas/spices powder before the onset of monsoon in the north India.
The arrivals from the primary markets continued to remain thin. Today 16 tonnes of farm grade pepper arrived and of this 14 tonnes were traded at Rs 388 - 392 a kg, depending on quality, grade and area of production, the sources said.
July contract on the NCDEX increased by Rs 105 to the last traded price (LTP) of Rs 41,200 a quintal. August and September were up by Rs 190 and Rs 265 respectively a quintal to the LTP of Rs 41,500 and Rs 41,765 a quintal.
Total turnover dropped by 293 tonnes to close at 1,861 tonnes while the total open interest increased by 148 tonnes showing additional purchase.
July open interest declined by 26 tonnes to 3,186 tonnes while that of August and September increased by 170 tonnes and 2 tonnes respectively to 1,813 tonnes and 78 tonnes.
Spot prices remained unchanged in a matching demand and supply situation at Rs38,800 (ungarbled) and Rs40,300 (Garbled) a quintal.
Indian parity in the international market was at $7,500 a tonne (c&f) Europe and $7,800 a tonne (c&f) US. The parity would have gone up further but for the weakening of the rupee against the dollar, they added.
An overseas report today said the prices for Vietnam black pepper were “steady to stable.”
Keywords: pepper futures market,