Pepper market recovered on rising domestic demand amid short supply of physical pepper on the spot market on Thursday. Consequently, all the active contracts ended above the previous day closing.
'There were no sellers of physical pepper on the spot market and, in fact, primary market dealers were ready to buy farm grade pepper from the hedgers at Rs 7 to 8 below the December price. Some were even ready to buy valid stocks at December prices in the morning,” market sources told Business Line.
Inquiries were coming from upcountry markets. But, availability is only on the exchange platform. At the same, the high fluctuation in the prices has created an uncertainty in the market and that in turn is said to be dissuading the trade from making any commitment, they said.
December contract on the NCDEX increased by Rs 510 a quintal to close at Rs 38,120 a quintal. February and March went up by Rs 310 and Rs 290 respectively to close at Rs 35,225 and Rs 34,680 a quintal.
Total turnover decreased by 14,394 tonnes (483 per cent) from that of yesterday to close at 2,979 tonnes. Total open interest moved up by 42 tonnes to close at 8,167 tonnes.
December open interest dropped by 65 tonnes to close at 6,527 tonnes while that of February and March rose by 94 tonnes and 10 tonnes respectively to close at 1,255 tonnes and 326 tonnes. There was some switching over and additional buying.
Spot prices in tandem with the futures market trend increased by Rs 300 a quintal to close at Rs 37,500 (ungarbled) and Rs39,000 (MG 1) a quintal.
There were no activities on the spot in the absence of any arrival, they said.