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The pepper futures market on Friday dropped on bearish activities despite good buying support on the futures.
The market as usual remained highly volatile on the tug of war between the bulls and bears and ended below yesterday's closing. Today, the bears were in the driving seat, market sources told Business Line .
Arrivals continued to remain thin with consignments getting sold upon arrival. Both new and old pepper was traded at Rs 205-Rs 220 a kg, they said.
Besides, leading exporters showed interest to buy but export quality material was limited, they said.
As the difference between Jan and Feb delivery has narrowed down, there was no “badla,” they said. Investors holding pepper may tend to deliver. Bears propagate that there won't be takers while bulls spread the opposite message. Drop in area under pepper and poor crop is being used as a weapon by the bulls, they said.
February contract on NCDEX was down by Rs 168 to close at Rs 22,669 a quintal while March and April fell by Rs 305 and Rs 271 respectively to close at Rs 22,877 and Rs 23,198 a quintal.
Total turnover increased by 2,380 tonnes to close at 10,503 tonnes.
Total open interest increased by 553 tonnes to close at 12,611 tonnes showing huge additional purchasing, they said.
February open interest moved up by 83 tonnes while that of March and April increased by 434 tonnes and 31 tonnes respectively to close at 3,733 tonnes and 490 tonnes.
Spot prices
Spot prices in tandem with the futures market trend, dropped by Rs 100 despite good buying support and closed at Rs 21,600 (ungarbled) and Rs22,400 (MG 1) a quintal.
Indian parity in the international market was at $5,150-5,175 a
tonne (c&f) and remained competitive, they said.
According to an overseas report the US markets were quiet.
Lasta was quoted at $5,175-5,200 f.o.b. Brazil B1560 g/l $4,800/$4,825 f.o.b. Others ruled slightly higher, it said.
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