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Pepper futures on Wednesday moved up on bullish activities and some buying interest after remaining highly volatile.
Investors sold March were buying farm grade spot pepper. Small quantities of spot pepper were traded. New pepper was bought at Rs 206-207 a kg while old good quality was traded at Rs 215-217 a kg, trade sources told Business Line.
However, the market is run by operators who “without adhering to the market fundamentals are operating on the advice of expert analysts who guide them with graphs and charts”, they alleged.
The bulls were in the driving seat today and hence the market moved up, they said. There was good switching over and additional purchases.
Turnover rises
February contract on the NCDEX was up Rs 117 to Rs 22,545 a quintal. March and April went up by Rs 132 and Rs 100 respectively to Rs 22,922 and Rs 23,260 a quintal. Total turn over increased by 1,607 tonnes to 6,331 tonnes.
Total open interest moved up by 90 tonnes to 11,706 tonnes. February open interest was down by 328 tonnes to 8,340 tonnes while March and April moved up by 412 tonnes and three tonnes respectively to 2,741 tonnes and 451 tonnes showing good switching over and additional purchases in March.
Spot gains
Spot prices on good buying support moved up to 21,400 (ungarbled) and Rs 22,200 (MG 1) a quintal.
Indian parity in the international market moved up to $52,25-5,250 a tonne (c&f) and was slightly above other origins.
Even when the parity was at par with others buyers were not showing interest, they said.
The wild fluctuations coupled with the disruption in movement of containers at the Kochi port are the reasons attributed to the lack of interest shown by the overseas buyers, including those who prefer Malabar, they said.
An overseas report from the US today said Ecuador reportedly traded its asta grade pepper at $5,075-5,100 a tonne (c&f) recently.
Most buyers were seem to be covering near bys only at the moment.
Prices quoted for black pepper of different origins (in $/tonne) c&f New York were MG 1 asta – 5,175-5,250; Malabar faq 500g/l –4,950-5,000 f.o.b; Lampong asta – 5,000-5,100 f.o.b; Brazil B2 500g/l – 4,850 f.o.b; Brazil B1 550g/l – 4,900 f.o.b; Brazil B asta -5,000 f.o.b; Vietnam asta – 5,175-5,200; Ecuador asta – 5,100 (very limited); and MLV asta – 5,400 ex-warehouse New York/New Jersey.
White pepper prices per tonne in dollar c& f were Muntok - 7,800 ; Vietnam (double washed) – 7,375-7,400; and Ecuador – 7,125-7,225 (very limited).
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