The pepper market was highly volatile on Wednesday with ups and downs and eventually ended in a mixed trend.
Two active contracts moved up slightly while the third dropping marginally. Buying support was weak.
Many of operators were buying spot and selling futures, July/August delivery and tendering the goods on exchange platform. “In fact, bull operators were squeezing the short position holders,” market sources told Business Line.
The stock position gives the impression that there is going to be no material which will have its validity expiring on Aug 5, they said.
On the spot, 15 tonnes of farm grade pepper arrived and they were traded at Rs 396, 399 and 401 a kg depending upon quality, grade and area of production.
July contract on the NCDEX moved up by Rs 45 to the last traded price (LTP) of Rs 42,435 a quintal while August also increased by Rs 45 a quintal to the LTP of Rs 42,815 a quintal. September dropped by Rs 190 to the LTP of Rs 43,250 a quintal.
Total turnover increased by 526 tonnes to 4,308 tonnes. Total open interest increased by102 tonnes to 5,175 tonnes.
July open interest fell by 231 tonnes to 845 tonnes while that of August and September went up by 320 tonnes and 13 tonnes respectively to close at 4,100 tonnes and 197 tonnes.
Spot prices on slack buying interest declined by Rs 100 a quintal to close at Rs 39,600 (ungarbled) and Rs 41,100 (MG 1) a quintal.
Indian parity in the international market was at $7,850 - $7,900 a tonne (c&f) for Europe and $8,150 - $8,200 a tonne (c&f) for the US.
According to an overseas report, the pepper market continued to shown an easier trend besides being nervous.
Difference between various producers was wide. However, Vietnam remained relatively steady with FAQ 500 GL at $6,075 a tonne (fob), FAQ 550 GL at $6,325 - $6,350a tonne (fob) while Brazil B1 was at $6,350 a tonne (fob) August shipment. Lampong Asta was at $6500 and tonne (CFR) New York.
Keywords: pepper market,