The pepper market continued its decline on Wednesday on some bearish activities and some selling pressure. All the active contracts ended below the previous day’s closing.
Total turnover dropped sharply with 94 per cent of it concentrating in August and 2 and 4 per cent respectively in July and Sep, trade sources said. Open interest increased.
Investors holding farm grade pepper from the plains were selling at Rs 28–30 below the August delivery price. Some 15 tonnes were reportedly traded today.
Some of the processors were buying them selling the August delivery on the exchange platform which they can deliver from August 6 onwards. The sunny weather during this rainy season (southwest monsoon) is favouring the processors, market sources told Business Line.
As the prices were ruling high for a long time this year, the major buyers in the main seven centres in North India such as Nagpur, Gwalior, Indore, Ranchi, Delhi, Jaipur etc have not been keeping any inventory for more than three weeks because of the heavy investment involved. Added to this, the end users were buying only hand to mouth to meet their immediate requirement.
Karnataka pepper from Sakleshpur and Chikmagalur was being offered at Rs 415 a kg delivered anywhere in India.
July contract on the NCDEX decreased by Rs 260 to the last traded price (LTP) of Rs 42,570 a quintal. August and September dropped by Rs 185 and Rs 135 respectively to the LTP of Rs 43,205 and Rs 43,550 a quintal.
Total turnover fell by 2,321 tonnes to 3,318 tonnes. Total open interest increased by 174 tonnes to 6,153 tonnes.
July open interest declined by 57 tonnes to close at 216 tonnes while that of August and September increased by 196 tonnes and 33 tonnes respectively to close at 5,102 tonnes and 762 tonnes.
Spot prices remained unchanged on limited activities on the spot at Rs 40,100 (ungarbled) and Rs 41,600 (MG 1) a quintal.
Indian parity in the international market was at $7,925 - $7,950 a tonne (c&f) Europe and $8,225 - $8,250 a tonne (c&f) for the US. “When the exchange quality pepper can fetch this price here, why should the trade think of selling it overseas so cheap”, they asked.
In the overseas market, Brazil quoted B1 at $6,200 a tonne (fob) Victoria, July/1st half Aug shipment, a report said.