The pepper market fell on reports of more availability of the material on the exchange platform coupled with some selling pressure on the spot following decline in the futures market on Thursday . Consequently, all the deliveries across the board closed below the previous day closing.
There was liquidation in Feb and buying of spot. The turn over increased significantly by 81 per cent in March alone while buying was there in March and April, market sources told Business Line.
Exporters who have made commitments earlier for February/March shipments were seen ready to buy at Rs 410 and 411 a kg so as to fulfil their export commitments, they said.
Some of other financiers who are holding stocks were also seen showing interest to sell their product at Rs 425 a kg, but buyers were reportedly offering Rs 15 less a kg.
Meanwhile, good afloat business has taken place today for an estimated 47 tonnes of fresh pepper at Rs 386, 396 and 406 a kg, they said.
March contract on the NCDEX opened on an easier note at Rs 36,455 a quintal and traded with volatility. At the beginning of the forenoon session it went up and touched the highest price of Rs 36,565 a quintal up by Rs 110 from the opening price and traded with high volatility.
In the afternoon, it touched the lowest price of Rs 35,860 a quintal, down by Rs 705 and then traded with volatility and recovered marginally in the closing session to the last traded price of Rs 36,200 a quintal.
February contract on the NCDEX decreased by Rs 150 a quintal to close at Rs 39,490 a quintal. March and April dropped by Rs 390 and Rs 285 respectively to close at Rs 36,120 and Rs 34,880 a quintal.
Total turnover increased by 742 tonnes to close at 1,613 tonnes. Total open interest moved up by 37 tonnes to 3,714 tonnes. February open interest decreased by 40 tonnes to 565 tonnes while that of March and April were up by 29 tonnes and 25 tonnes respectively to close at 2,102 tonnes and 576 tonnes.
Spot prices remained unchanged at previous levels of Rs39,600 (ungarbled) and Rs41,100 (MG 1) a quintal on matching demand and supply.
Indian parity in the international markets was at $7,900 a tonne (c&f) for prompt shipment while Feb was at $7,600 a tonne (c&f) and Mar at $7,000 a tonne (c&f). All other origins are closed on holidays.
Keywords: pepper prices