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The pepper market witnessed high volatility, consequent to a tug of war between the bull and bear operators and eventually all the contracts ended marginally up.
The market opened firmer in the morning and started sliding, September hit the highest price of the day in the forenoon while October touched the highest price in the afternoon and then after high volatility, ended slightly above the previous day close.
As the number of working days left for September maturity are less than 15 because of the Onam holidays, there was liquidation and switching over.
Investors were ready to buy fresh delivered pepper at September delivery price while local arms of the multi-national companies of multi-origin operations were buying good quality high bulk density high range pepper at a premium.
The unfavourable weather conditions prevailing in the high ranges and Wayanad led to some selling and there was some pressure seen among the small, medium farmers and dealers who do not have better drying and storage facilities, trade sources told Business Line .
Meanwhile, exchange has been stringent on the quality parameters and that in turn is allegedly slowing down the arrivals, they said.
The market appears to be destined to shoot up further if the current trend in the other origins turns out to be true. The spiralling prices have kept the buyers, both domestic and overseas, cautious, market sources told Business Line . Indian parity is at $7,600 a tonne (c&f) and all the other origins are also firm, they said.
September contract on the NCDEX moved up by Rs 79 to close at Rs 33, 446 a quintal. October and November went up by Rs 43 and Rs118 respectively to close at Rs 34,094 and Rs 34,529 a quintal.
Total turnover increased by 1,133 tonnes to 7,378 tonnes. Total open interest dropped by 131 tonnes to 11,593 tonnes.
September open interest fell by 423 tonnes to 6,447 tonnes while October and November increased by 269 tonnes and 15 tonnes respectively to 4,552 tonnes and 400 tonnes.
Spot prices moved up by Rs100 on buying interest to the highest ever levels of Rs 30,600 (ungarbled) and Rs 31,600 (MG 1) a quintal.
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