The pepper market on Wednesday ended nearly steady with marginal difference in the prices of active contracts.
There was switching over of good quantity to August and additional purchase of around 60 tonnes. The staggered delivery system will come into force tomorrow.
The estimated stock in the exchange platform is at 1,600 tonnes while of this 1,000 tonnes are held by big operators leaving a balance of 600 tonnes.
It is likely that the operators might take delivery, trade sources told Business Line. They said the small and medium players were switching over from July to August. “There could be a squeeze if the sellers opted for delivery,” the sources said.
On the spot, 7 tonnes of farm grade pepper arrived and that was traded at Rs 384-388-390 a kg depending upon the quality, moisture content and the area of production.
July contract was decreased by Rs 35 a quintal to the last traded price (LTP) of Rs 40,680 a quintal. August and September moved up by Rs 90 and Rs 75 respectively to the LTP of Rs 41,210 and Rs 41,500 a quintal.
Total turnover was down by 91 tonnes to close at 5,053 tonnes. Total open interest moved up by 59 tonnes to 6,021 tonnes.
Spot prices were steady at previous levels of Rs38,400 (ungarbled) and Rs39,900 (MG 1) a quintal on limited activities.
Indian parity in the international market was at $7,800 a tonne (c&f) for Europe and $8,100 (MG 1) a tonne for the US and remained much above other origins, they said.
Lasta was offered at $ 6,500/6,550 a tonne (fob) or $ 3,05/lb CFR New York, according to an overseas report.
Vietnam was reportedly easier with faq 500 G/L at $6,070; faq 550 G/L $6,340 per tonne all fob and V Asta $6,750 a tonne.
Brazil black pepper prices: B Asta $6,400/$6,500 a tonne fob Vitoria/Belem respectively and B1 560 G/L was at $6,350 a tonne fob.
Keywords: pepper market,