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Pepper futures, on Friday, witnessed the usual tug-of-war between bulls and bears, with the former regaining control after a few days, got activated and pushed all the contracts up at the closing minutes of trade today.
The market opened on a weak note, and continued to remain so till noon, and in the afternoon, the bulls got activated and pushed the market up, trade sources said.
Despite liquidation, the market moved up following the concerted efforts by bulls from all corners also taking support from established broking firms by sending out buy calls, and thus slapped back at the new generation brokers who were trying to pull the market down, market sources told Business Line .
On the spot inter-State dealers, exporters and processors were buying directly afloat pepper from primary markets, bypassing the terminal markets, because of the high cost involved, they said.
However, around seven tonnes of new pepper arrived at the market today, and was traded by Madhya Pradesh-based dealers at Rs 206 a kg.
February contract on the NCDEX went up by Rs 307, and closed at Rs 22,620 a quintal. March and April also increased by Rs 314 and Rs 283 respectively, to close at Rs 23,006 and Rs 23,355 a quintal.
Total turnover moved up by 466 tonnes to 6,422 tonnes. Total open interest dropped by 121 tonnes to 11,323 tonnes. February open interest dropped by 171 tonnes to 9,006 tonnes, while that of March and April moved up by 42 tonnes and 13 tonnes respectively, to close at 1,759 tonnes and 420 tonnes.
Spot prices
Spot prices moved up, in tandem with the futures market and good buying support, by Rs 200 to close at Rs 21,400 (ungarbled) and Rs 22,200 (MG 1) a quintal.
India imported 14,600 tonnes of black pepper during January-December 2010, as against the export of 16,000 tonnes, they said. Indian parity in the international market was at $5,200-5,225 a tonne (c&f).
Buyers might stay away, waiting for the Vietnam new crop to arrive, the sources added.
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