The pepper market on Friday bounced back on bullish activities. Supply squeeze also kept the market firm despite efforts by bear operators to pull it down.

All the active contracts ended much above the previous day's closing as the bull operators were in the driving seat.

Steady opening

Market opened steady and June declined and touched the lowest levels in the forenoon session. Thereafter it was trading with marginal volatility.

At the beginning of the closing session, prices moved up sharply and traded with high volatility and touched the first upper circuit breaker level and then traded above it.

The highest traded price for June was Rs 39,390, up by Rs 1,515 a quintal. May was, however, traded with limited activities as the difference between buyer and seller prices were very wide.

At the beginning of afternoon session, May touched the lowest price of Rs 37,000 a quintal and thereafter recovered and moved up sharply and traded with high volatility and ended at Rs 38,100, up by Rs 1,100 a quintal from the lowest price of the day.

May, which matured today, has 240 tonnes for delivery. Good quantity of material was delivered directly between the buyers and sellers outside the exchange platform at mutually acceptable prices because of “the cumbersome and impractical measures introduced by the authorities,” market sources told Business Line .

Arrivals from the primary market remained very thin. Only seven to eight tonnes of fresh pepper arrived today. The market, in fact, continued to experience a tight supply situation and it is evident from the thin arrivals. And yet, there were bearish efforts to pull the market down on expert forecasts of possible increased arrivals, they said.

May contract on the NCDEX increased by Rs 860 to the last traded price (LTP) of Rs 38,100 a quintal. June and July went up by Rs 1,250 and Rs1,265 respectively to the LTP of Rs 39,280 and Rs 39,920 a quintal.

Turnover

Total turnover increased by 1,796 tonnes, to end at 3,823 tonnes indicating circular trading. Total open interest moved up by 1 (One) tonne to 4,943 tonnes.

May open interest dropped by 98 tonnes to 240 tonnes while June and July increased by 50 tonnes and 49 tonnes respectively to close at 4,127 tonnes and 521 tonnes showing switching over.

Spot prices went up by Rs 600 in tandem with the futures market trend and tight supply scenario to close at Rs 37,100 (ungarbled) and Rs 38,600 (MG 1) a quintal.

Indian parity in the international market was at $7,225 a tonne (c&f) Europe and $7,525 a tonne (c&f) for the US.

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