The pepper market continued to move up on buying support amid limited arrivals on Tuesday. All active contracts closed much above the previous day’s closing.

Bull operators were liquidating their position in Dec and getting out of the market while some of those who are short were covering.

About 15 tonnes of new pepper arrived today and that were traded at Rs358 - Rs372 a kg depending upon the quality, bulk density and area of production. Domestic buyers covered to meet the upcountry demand, market sources told Business Line.

December contract on the NCDEX increased by Rs 105 a quintal to close at Rs 39,255 a quintal while that of February and March went up by Rs 515 and Rs 490 respectively to close at Rs 35,670 and Rs 35,380 a quintal.

Turnover

Total turnover rose by 354 tonnes to close at 2,437 tonnes. Total open interest fell by 338 tonnes to close at 3,511 tonnes.

December open interest decreased by 311 tonnes while that of February and March dropped by 37 tonnes and 14 tonnes respectively to close at 2,149 tonnes and 506 tonnes.

Spot prices continued to remain steady at previous levels of Rs37,200 (ungarbled) and Rs38,700 (MG 1) a quintal on limited activities.

Indian parity in the international market also remained more or less steady at $7,450 a tonne (c&f) and remained out priced. Overseas buyers are said to be on a wait and watch mode hoping the prices would decline once the new crop started arriving in large quantities next month.

(This article was published on December 18, 2012)
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