The pepper market witnessed high volatility on Monday with September contract closing slightly higher while others ending marginally lower. Market opened firmer and traded lower in the forenoon. It was highly volatile in the afternoon and in the closing session it hit the highest and lowest prices of the day, as the bull operators were trying to push up while bears were trying to pull down. “Consequently, turnover was higher during the closing session and this kind of trading in this session for making gains from higher volume is not a good sign”, market sources told Business Line.

Actual trading was limited. On the spot transactions were also negligible. Buyers from Erode, who were engaged in turmeric trade are said to have entered the pepper market following the decline in turmeric prices. They were covering good quantity of pepper from Coorg, Karnataka for catering to upcountry markets such as Jharkhand, Bihar etc, trade sources claimed.

Despite additional purchases, October contract dropped. There was good liquidation in September, they said.

September contract moved up by Rs 72 to close at Rs 33,406 a quintal while October and November declined by Rs 219 and Rs 68 respectively to close at Rs 33,815 and Rs 34,216 a quintal. Total turnover dropped by 66 tonnes to 6,849 tonnes. Total open interest dropped by 187 tonnes to close at 11,643 tonnes. September open interest fell by 333 tonnes to 5,915 tonnes while October increased by 159 tonnes to 5,147 tonnes and November declined by 14 tonnes to 390 tonnes. Spot prices remained unchanged on limited activities at Rs 30,400 (ungarbled) and Rs 31,400 (MG 1) a quintal.

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