Pepper futures continued to rule hot on positive reports from Vietnam and bullish activities by international operators through their clients here.

Reports that Vietnam has pushed up its prices for farm-grade GL500 and GL550 to $5,900 and $6,200 a tonne (fob) respectively have aided the price rise.

Besides, Vietnam-based operators were reportedly looking for Asta-grade pepper in India.

There are worries that Vietnam might default, given the rising trend in prices. Indonesia is reported to have defaulted in February shipments, market sources told Business Line .

Buyers were buying afloat pepper from Wayanad, Idukki and the plains at Rs 24,900-Rs 25,500 a quintal. Sellers were available. But demand is said to have outweighed supply.

April contract on the NCDEX went up by Rs 160 to close at Rs 26,457 a quintal. May and June shot up by Rs 368 and Rs 342 respectively to close at Rs 27,219 and Rs 27,674 a quintal.

Turnover increased by 10,845 tonnes to 20,382 tonnes. Open interest dropped by 222 tonnes to 14,206 tonnes, indicating liquidation. Yet prices went up in the futures market, sources said.

Spot prices went up by Rs 200 to close at Rs 24,900 (ungarbled) and Rs 25,700 (MG-1) a quintal on good buying support and in tandem with the futures market trend.

Indian parity in the international market has gone up to $6,300 a tonne (c&f) for Europe and Rs 6,400 a tonne (c&f) for the US. It would have been higher but for the weak rupee against the dollar. Indian parity remained competitive worldwide, the sources added.

Related Topics
comment COMMENT NOW