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Pepper futures turned hot on Friday on strong buying interest coupled with overseas bullish reports and ended nearly hitting the second circuit level. Reports of brisk Chinese buying of black pepper from Vietnam and consequent firmer prices there coupled with firmer reports from the US aided the market to rise.
Primary market dealers reported to have liquidated earlier and sold to Indian exporters and were not showing any interest to sell now. As a result, there were no sellers giving the impression that the late comers have missed the bus, market sources told Business Line .
Turnover
The total turnover had increased by 180 per cent because of the speculative “buying and selling and buying and selling” on the exchange without any change in the total open interest, which moved up by only 24 tonnes. After a long time there were buy calls from local leading brokers' analysts, they said.
April contract on NCDEX shot up Rs 812 to close at Rs 24,446 a quintal. May and June increased Rs 792 and Rs 829 respectively to close at Rs 24,718 and Rs 24,990.Total turnover soared by 9,186 tonnes to close at 14,280 tonnes. Total open interest moved up 24 tonnes to 11,097 tonnes. April open interest moved up by 7 tonnes to 8,838 tonnes while that of May declined by 25 tonnes to 1,875 tonnes. June increased by 34 tonnes to 263 tonnes.
Spot prices
Spot prices in tandem with the futures market trend and good buying interest shot up by Rs 500 to close at Rs 22,600 (ungarbled) and Rs 23,400 (MG 1) a quintal.
Overseas trend
An overseas report from the US today said pepper markets are firming up. Vietnam is setting the tone as for the past few days Chinese buyers were frenzied and briskly buying black pepper for immediate delivery. Add to this certain growing areas have received unusual rains for the last 8-10 days, which has slowed down harvesting in some areas and the forecasts are that the rains might last for another week or so, it said. This is likely to delay further the arrivals also, it said.
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