Pepper prices moved up on Friday as the running contract moved up above the spot prices leading to a squeeze in March delivery. Consequently, all the active contracts ended higher.
There was heavy liquidation in March and over all open interest showed a sharp fall and inspite of that the prices moved up. “It is only because of squeezing in Mar the prices moved up,” market sources told Business Line.
Long position holders having hedge wanted to take delivery but they are allegedly apprehensive of getting delivery of the material on the exchange, they claimed.
As the March delivery was trading above spot people were liquidating and getting out of the market, they said.
Karnataka pepper reportedly arrived at the upcountry destinations delivered at prices ranging between Rs 330 and Rs 370 a kg depending upon the quality, such as moisture content, bulk density, etc.
On the spot, 50 tonnes of fresh pepper arrived and that were traded at the average price of Rs 350 all afloat, they said.
In Kerala, the farmers were not showing interest to sell at the current levels, they said.
March contract on the NCDEX increased by Rs 180 toRs 37,335 a quintal. April and May went up by Rs 295 and Rs 360 respectively to Rs 36,175 and Rs 36,080.
Total turn over increased by 445 tonnes to 2,472 tonnes. Total open interest decreased by 305 tonnes to 2,746 tonnes.
Spot prices, on limited activities, remained unchanged at Rs 35,100 (ungarbled) and Rs 36,600 (MG 1) a quintal.
Indian parity in the international market moved up to $7,200 (c&f) for March shipment. April was at $7,150 and May at $7,100 a tonne (c&f).