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The pepper market on Wednesday showed a mixed trend with rise in May contract prices and marginal decline in nearby positions.
Activities were limited. But there appeared to be good buying outside the exchange platform for May delivery which was attributed to the significant rise in May delivery prices.
Non-availability of physical pepper from any source other than the exchange platform is said to have compelled the needy to cover from the exchange.
Because of the allegedly cumbersome formalities, both the buyers and sellers were showing interest to buy and sell outside the exchange purview, market sources told Business Line .
They said that as the spot prices are ruling much above the May delivery prices “no marking has been done so far ever since the imposition of staggered delivery system from May 14. It shows the measures are impractical and unrealistic.”
“It is high time, therefore, for the exchange and the regulator to look into the impracticality of the measures introduced, taking the experience of May delivery in to account,” they argued.
May contract on the NCDEX increased by Rs 565 to the last traded price (LTP) of Rs 37,460 a quintal. June and July declined by Rs 20 and Rs 10 respectively to the LTP of Rs 38,055 and Rs 38,670 a quintal.
Turnover
Total turnover decreased by 383 tonnes to close at 1,984 tonnes. Total open interest dropped by 25 tonnes to 5,060 tonnes.
May open interest fell by 99 tonnes to close at 430 tonnes while that of June and July moved up by 3 tonnes and 66 tonnes respectively to 4,228 tonnes and 350 tonnes.
Spot prices remained unchanged at Rs36,700 (ungarbled) and Rs 38,200 (MG 1) a quintal on limited activities. There were no sellers.
Indian parity in the international market was at $7,125 a tonne (c&f) for Europe and $7,425 a tonne (c&f) for the US and it is getting competitive because of the lifetime low value of rupee against the dollar today, they said.
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