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Pepper futures on Thursday remained highly volatile as usual and dropped on liquidation.
Investors liquidated validity expired stocks while some were selling at Rs 6 below the March delivery price. Good quantities were traded in several directions covered by exporters, processors and inter-State dealers.
The market opened on a high note and hit the highest price of the day and then fell sharply and touched the lowest price of the day in the mid session. Then on reports of good quantities having traded some life got into the market and it recovered and ended below the previous close.
Arrivals
Overseas buyers were reluctant to cover hoping the prices in India would drop further on good arrivals of new crop. However, there were no farmers or dealers who wanted to sell, market sources told Business Line . The arrivals of new crop continued to remain thin. Whatever material available at present is the validity expired stocks held by investors, they said.
March contract on NCDEX fell by Rs 217 to close at Rs 22,680 a quintal. April and May dropped by Rs 159 and Rs 173, respectively, to close at Rs 22,887 and Rs 23,132 a quintal.
Total turnover fell by 2,542 tonnes to close at 10,933 tonnes. Total open interest dropped by 230 tonnes showing good liquidation to close at 12,047 tonnes.
Open interest
March open interest fell by 635 tonnes to 9,038 tonnes while April increased by 402 tonnes to 2,508 tonnes indicating good switching over and liquidation. May moved up by 3 tonnes to 304 tonnes.
Spot prices in tandem with the futures market trend dropped by Rs 100 to close at Rs 22,000 (un-garbled) and Rs 22,800 (MG 1) a quintal.
Indian parity in the international market was at $5,225-5,250 a tonne (c&f) and remained very much in line with other origins, they said. Some business might have also taken place at this rate as some needed the material covered, they said.
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