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Pepper prices continued to shoot up on strong demand amid limited availability with all the contracts moving up substantially while the spot continued to scale new heights every day.
Liquidation was there from September position holders as it is to mature on 20th and some switching over was seen in October and November.
On the spot, good buying took place. Processors, exporters and inter-state dealers were reportedly buying dried pepper from the high ranges at Rs 315 to Rs 325 a kg depending upon quality. An estimated 65 tonnes are said to have been traded today, market sources told Business Line. As the futures were ruling high investors were buying at Rs 3 above the September delivery price, they said.
Domestic demand also started picking up today. Sunny weather changed the sentiments of the buyers positively. However, sellers were cautiously selling at every hike in the prices.
Rich growers and dealers were releasing only limited quantities at every hike, they said.
Overall there is a squeeze in availability world over, they claimed.
September contract on the NCDEX shot up by Rs 465 to close at Rs 34,400 a quintal. October and November increased by Rs 438 and Rs 401 to close at Rs 35,305 and Rs 35,800 a quintal, respectively.
Total turnover shot up by 5,059 tonnes (100 per cent rise) to close at 10,520 tonnes. Total open interest dropped by 343 tonnes on liquidation to 11,481 tonnes.
September open interest fell by 912 tonnes to 757 tonnes. October and November moved up by 411 tonnes and 126 tonnes respectively to 9,550 tonnes and 834 tonnes indicating liquidation and switching over.
Spot prices on strong buying support increased by Rs 400 to close at Rs 31,500 (ungarbled) and Rs33,000 (MG 1) a quintal.
Indian parity in the international market moved up to $7,750 8,000 a tonne to Europe and $8,000 a tonne to the US, they said. Rise in futures coupled with a strong rupee against the dollar today aided the rise, they said.
Indonesia is reported to have quoted $8,000 a tonne for Lampong Asta grade while other origins were also said to be firmer, they claimed. However, some resistance was visible today from overseas buyers, they added.
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