Agri Business

Pepper up on bullish reports

Our Bureau Kochi | Updated on February 21, 2011 Published on February 21, 2011

pepper   -  Business Line

The pepper futures market moved up on Monday on bullish reports. The market opened on an easier note and later touched the highest level of the day, slid in the afternoon, and closed above the previous day's closing.

Arrivals picked up slowly but there was no selling pressure. Arrivals at the terminal market were thin. Afloat consignments were available and depending upon the quality, pepper was being traded at Rs 226-231 a kg.

Since growers had liquidated their old stocks when prices were ruling above Rs 200 a kg they are replenishing their stock now and that appears to be the reason for the slow arrivals.

Additional buying and taking delivery of the 2,500 tonnes was also seen as the reason for the price hike on Monday, market sources told Business Line.

March contract on NCDEX moved up by Rs 161 a quintal to close at Rs 23,696. April and May contracts went up by Rs 172 and Rs 101, respectively, to close at Rs 23,907 and Rs 24,192 a quintal.

Total turnover increased by 2,267 tonnes to close at 8,431 tonnes. Total open interest moved up by 382 tonnes to close at 12,240 tonnes.

March open interest increased by 282 tonnes to 9,889 tonnes. April and May also moved up by 97 tonnes and 10 tonnes, respectively, to close at 1,849 tonnes and 296 tonnes.

Spot prices in tandem with the futures market trend moved up by Rs 100 a quintal to close at Rs 22,500 (ungarbled) and Rs 23,300 (MG 1) a quintal.

Indian parity in the international market remained slightly above other origins at $5,500 a tonne (c&f) because of the rise in the futures market and strengthening of the rupee against the dollar.

However, bullish reports from overseas indicated a tight supply scenario, they said.

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Published on February 21, 2011
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