Pepper continued to surge ahead on Monday with the future contracts moving up substantially while the spot is scaling new peaks everyday on strong buying support amid limited supply.
Spot prices have touched the historic level of Rs 340 a kg for MG 1 and Rs 325 for ungarbled.
Badla scope
The difference between the September and October contracts has widened by Rs 10 a kg, creating good option for badla, trade sources said. Those holding September stocks, validity of which will expire on October 5, are expected to opt for delivery. The volume available for delivery is estimated at less than 400 tonnes, market sources told
Some business was said to have been concluded with US buyers on Friday at $8,050 a tonne (c&f) and at $8,125 a tonne (c&f) for treated material and this phenomenon has influenced the market today. They might have covered October delivery today and that aided the price rise, they said.
Rupee impact
Weak rupee today haskept the prices at $8,050 - $8,150 a tonne (c&f), they said. There are buyers at this rate as all other origins were quoted above the Indian parity. Indonesia reportedly quoted $8,200 a tonne for Lampong Asta, they said.
September contract, which is maturing tomorrow, increased by Rs 535 while October and November contracts shot up by Rs 605 and Rs 590 respectively to close at Rs 36,275 and Rs 36,885 a quintal.
Turnover, open interest
Total turnover increased by 2,713 tonnes to close at 7,688 tonnes, despite all the “mandis” remaining closed following a hartal called by the Left Parties and the BJP against petrol price hike. However, trading on the spot market was very much limited and the demand outstrippedsupply, they said.
Total open interest increased by 459 tonnes to close at 11,897 tonnes indicating good additional buying. September open interest declined by 90 tonnes while that of October and November increased by 401 tonnes and 122 tonnes respectively to close at 9,984 tonnes and 1,151 tonnes.
Spot prices shot up by Rs 500 to close at Rs 32,500 (ungarbled) and Rs 34,000 (MG 1) a quintal on strong demand amid limited supply, they added.