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Pepper futures continued to witness the ‘tug of war’ between the long and short position holders and as a result, high volatility was seen throughout.
At the same time, activities were limited last week.
Many were buying spot and selling futures. There was liquidation, switching over and additional buying. Processors stationed in Kerala’s Wayanad and Idukki districts were buying spot, processing and depositing it in the exchange and selling their Oct delivery as it was giving them good return, market sources claimed.
Nearly 100 tonnes of pepper were being deposited daily while almost an equal quantity was being taken out, market sources told Business Line.
Arrivals from the primary markets have picked up late last week giving the impression that the farmers have made up their mind to liquidate whatever stocks they are holding for long at the prevailing prices which are above Rs 400 a kg. The first two active contracts ended marginally above the previous weekend’s closing.
Oct and Nov contracts moved up by Rs 160 and Rs 100 a quintal respectively to the last traded price on Saturday of Rs 43,450 and Rs 43,100. Dec contract declined by Rs 760 to the LTP of Rs 42,300.
Total turn over increased by 4,929 tonnes to 11,592 tonnes. Total open interest increased by1,739 tonnes to close at 8,168 showing good switching over and additional buying.
Spot prices remained unchanged at Rs 40,000 (ungarbled).
According to the farmers the number of spikes for a vine is less but the number of berries are more in each spike indicating better yield/vine.
Therefore, they were liquidating what ever stocks held by them.
Overseas trend
Meanwhile, reports from Brazil said there is a further delay in this year’s pepper crop. Vietnam has not been showing any aggressiveness in selling and similar is the trend with Indonesia which is already through the harvesting. Brazil is also getting into harvesting now.
Another overseas report at the weekend said Ecuador was the most competitive origin of black pepper Asta grade but very limited quantity was available and quick payment was required to be made.
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