Agri Business

Pepper moves up on bullish activities

G. K. Nair Kochi | Updated on July 20, 2011

Pepper increased on operators' activities, despite a marginal rise in open interest and turnover.

The market opened at lowest price of the day with marginal volatility but in the afternoon session it hit the highest price of the day, and then declined to move up and ended much above the previous day's closing.

July there was liquidation while there were additional purchases for August and September.

Short position holders were said to be switching over also.

The upsurge in the market could be attributed to the activities of operators, given the low open interest and thin increase in the volume, trade sources told Business Line.

They said, looking at the running of the market of late, some are calling the futures trading a “video game,” while some others have named it “live show” because, they alleged, the market is run on the “whims and fancies” of the operators and not adhering to the market fundamentals.

July contract on the NCDEX increased by Rs 551 to close at Rs 27,749 a quintal. August and September moved up by Rs 415 and Rs 421, respectively, to close at Rs 28,487 and Rs 28,965 a quintal.

Total turnover increased by 351 tonnes to 8,831 tonnes. Total open interest moved up by 53 tonnes to 12,766 tonnes.

July open interest dropped by 566 tonnes to 1,284 tonnes, while that of August and September went up by 472 tonnes and 137 tonnes, respectively, to close at 8,951 tonnes and 1,604 tonnes.

Spot prices in tandem with the futures market trend and tight supply situation increased by Rs 200 to close at Rs 27,200 (ungarbled) and Rs28,200 (MG 1) a quintal.

Indian parity in the international market has gone up to $6,600 a tonne (c&f) and remained much above other origins.

However, there are selective buyers overseas who support Malabar up to $200 difference per tonne over other origins. Beyond that levels only they might look for other material, they claimed. To retain this loyal market, the Government should consider bringing pepper under “focus group,” they said.

Published on July 20, 2011

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