Pepper market moved up on buying interest on Tuesday. Consequently, all the active contracts increased from the previous day’s closing.
The market was highly volatile today. Nov opened at Rs 42,555 a quintal and moved up sharply in the opening session to 43,800 a quintal up by Rs1,245 from the opening price and thereafter dropped sharply in the beginning of the forenoon session and touched the lowest price of Rs 42,490 a quintal down by Rs1,310 and traded with high volatility in the remaining sessions. Recovered in the concluding minutes and closed at Rs 42,620 a quintal. Dec contract also behaved also similarly, market sources said.
A total of 567 tonnes of pepper have been marked for early delivery under the staggered delivery system. There was liquidation of 307 tonnes of Nov besides some additional buying.
Arrivals from the primary markets were slackened and nine tonnes of farm grade pepper came and that were traded at Rs 400, 405, 410 and 415 a kg.
Alleged technical problems in the warehouses said to have compelled depositors of pepper to move the cargo to warehouses at far away places. Some in the trade alleged that it was a tactic aimed at discouraging deposits, market sources told Business Line.
According to the trade validity of 1,473 tonnes would expire on Dec 5 while validity of 4,200 tonnes would expire on Jan 5, 2013.
Nov contract on the NCDEX increased by Rs 190 to the last traded price (LTP) of Rs 42,725 a quintal. Dec and Feb went up by Rs 340 and 350 respectively to the LTP of Rs 42,645 and Rs 37,900 a quintal.
Total turnover decreased by 330 tonnes to close at 2,304 tonnes. Total open interest also fell by 422 tonnes to 8,501 tonnes.
Nov open interest dropped by 874 tonnes to close at 2,651 tonnes while that of Dec and Feb rose by 423 tonnes and 7 tonnes respectively to close at 4,967 tonnes and 755 tonnes.
Spot prices remained unchanged at Rs40,000 (ungarbled) and Rs41,500 (garbled) a quintal.
Indian parity in the international market was at $8,100 a tonne (c&f) for Europe and $8,400 a tonne (c&f) for USA at both Nov and Dec prices.
Keywords: pepper market,