The pepper market on Wednesday bounced back on slow selling pressure and consequently all the active contracts ended much above the previous day closing.
There was no reason for the market to rise today, the trade claimed. The market, in fact, is being pushed up and pulled down on the whims and fancies of the operators, they alleged. Cued by the slow down in arrivals today, the bulls became aggressive and pushed the market up.
“Such high volatility in the market is hurting the trade,” market sources told Business Line. Because of big difference between March and April, and April and May long position holders were switching over to average it out at a lower level, they said.
On the spot, 55 tonnes of fresh pepper were traded, they said.
Meanwhile, the trade in general believes that the release of the pepper locked up in the warehouses might be delayed indefinitely as they claimed that the “c&f agent” of the cartel had said it openly at the stake holders meeting here recently that the lots were not identifiable. This phenomenon has also aided the bull operators to push up the market, they said.
Given high fluctuations in the trading of a the small commodity pepper, farmers, dealers, traders and stake holders have urged the regulator to bring down the daily fluctuation price band to two per cent from the present 4 per cent.
March contract on the exchange opened on a firm note and moved up sharply in the opening hour itself and traded with volatility and upward trend throughout the day. Just before closing it touched Rs 37,950 a quintal up Rs 945 a quintal from the lowest price of the day. Then slipped marginally to the last traded price of Rs 37,895. March contract on the NCDEX increased by Rs 805 a quintal to close at Rs 37,875 a quintal. April and May went up Rs 535 and Rs 415, respectively, to close at Rs 35,300 and Rs 34260 a quintal.
Total turnover increased by 823 tonnes to 2,560 tonnes. Total open interest decreased by 46 tonnes to 3,465 tonnes.
March open interest fell by 119 tonnes to 1,833 tonnes while that of April and May moved up by 34 tonnes and 39 tonnes, respectively ,to close at 914 tonnes and 718 tonnes.
Spot prices in tandem with the futures market trend increased by Rs 300 a quintal to close at Rs38,300 (ungarbled) and Rs39,800 (MG 1) a quintal.
Indian parity in the international market was went up following rise in futures coupled with strengthening of the rupee against the dollar to $7,700 a tonne (c&f) prompt, and Mar at $7,500 a tonne (c&f) and Apr at $7,000 a tonne (c&f).