Pepper market shot up on circular trading despite good arrivals and limited domestic buying on Tuesday. All active contracts ended much above the previous day’s closing.
Domestic buyers were covering just 50 per cent of what they required because of the high prices. As prices shot up, more and more sellers were seen appearing in the primary markets and releasing old stocks of pepper. Some 80 tonnes of farm grade pepper arrived today and were traded., market sources told Business Line.
There was no fundamental support for the current spike in prices. Circular trading pushed up the prices, they said.
Turnover increased significantly. Open interest also went up. November contract on the NCDEX increased by Rs 370 a quintal to the last traded price (LTP) of Rs 44,250 a quintal. December and February prices went up by Rs 365 and Rs 205 respectively to the LTP of Rs 43,700 and Rs 39,100 a quintal.
Total turnover increased by 1,222 tonnes to close at 2,145 tonnes. Total open interest moved up by 288 tonnes to close at 9,187 tonnes.
November open interest increased by 231 tonnes to 5,891 tonnes while that of December and February went up by 16 tonnes and 32 tonnes respectively to close at 2,605 tonnes and 601 tonnes.
Spot prices in tandem with the futures market trend shot up by Rs 300 a quintal to touch Rs 40,900 (ungarbled) and Rs 42,400 (garbled) a quintal.
Indian parity in the international market was at around $8,500 a tonne (c&f) Europe and about $4,800 a tonne (c&f) for the US and remained totally out of the race.