Pepper on Wednesday moved up on good demand and reports of firmer overseas markets coupled with bullish sentiments.

There was tug of war to push up and pull down the market throughout the day and consequently the market was highly volatile. The turnover dropped significantly indicating that the people was loosing interest in such a violent market. As the Indian parity is the cheapest, orders are coming in from overseas markets, but the exporters were offering only limited quantities because of the uncertainty in the prices here due to high fluctuations in the futures market, market sources told Business Line .

All the contracts closed substantially above the previous day closing and similarly, spot prices also went up by Rs 200 a quintal.

Liquidation and switching over was there. On the spot, there were sellers at higher levels and more than 100 tonnes were reportedly traded at Rs 300 a kg and Rs 340 a kg depending upon bulk density, they said. Domestic demand is likely to get activated. Demand was there for high range pepper to meet the requirement for MG 1.

Oct contract on NCDEX went up Rs 215 to close at Rs 35,950 a quintal. Nov and Dec increased Rs 320 and Rs 535 respectively to Rs 36,740 and Rs 37,460 a quintal. Total turnover increased 124 tonnes to close at 12,086 tonnes. Total turn over dropped 2,654 tonnes to 9,595 tonnes.

Oct open interest fell 608 tonnes to 7,046 tonnes while that of Nov and Dec 627 tonnes and 103 tonnes respectively to close at 4,361 tonnes and 566 tonnes.

Spot prices went up Rs 200 to close at Rs 33,300 (ungarbled) and Rs 34,500 (MG 1) a quintal on good buying support. Indian parity in the international market was the cheapest at $7,900 a tonne (c&f) for Europe and $8,200 a tonne (c&f) US.

According to an overseas report, Vietnam FAQ min 500 GL at $7,850 a tonne (f.o.b.) HCMC and FAQ min 550 GL at $8,250 a tonne. White double washed was offered at $11,100 a tonne.

Related Topics
comment COMMENT NOW