The pepper market turned hot on good demand amid tight supply on Wednesday and all the active contracts ended much above the previous day’s closing.
February opened at Rs37,250 and at the end of the opening session it dropped by by Rs150 and traded with high volatility and in the closing hour it moved up sharply to Rs37,900 a quintal up by Rs650 a quintal.
The last traded price was at Rs 37,780 a quintal. Arrivals were thin as the growers are said to be replacing the stocks that they had liquidated earlier. besides, green pepper is being harvested and sold to industry in some parts of Idukki, especially to units near Kumily, trade sources told Business Line.
At the same time, apprehensions about releasing of around 8,000 tonnes of pepper locked up in the warehouses have also aided the price rise. Some seven tonnes of pepper arrived today from selected areas and that was traded at Rs 385-405 a kg.
February contract on NCDEX increased by Rs 435 a quintal to close at Rs 37,780. March and April went up by Rs 530 and Rs 90 respectively to close at Rs 35,775 and Rs 34,535 a quintal.
Total turnover increased by 486 tonnes to 1,463 tonnes. Total open interest went up by 170 tonnes to 3,400 tonnes.
February open interest moved up by 29 tonnes to 1,456 tonnes while that of March and April rose by 98 tonnes and 43 tonnes respectively to close at 1,363 tonnes and 449 tonnes.
Spot prices increased in tandem with the futures market trend and the tight supply scenario by Rs300 to close at Rs38,800 (ungarbled) and Rs 40,300 (MG 1) a quintal.
Indian parity in the international market was at $8,300 a tonne(c&f) for January and that for Feb was at $7,500 a tonne and March at $7,100-7,200 a tonne (c&f). The exporters said they were making their own calculations and they were not based on the futures exchange prices.