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Pepper prices on Tuesday dropped despite good buying interest and all the active contracts ended much below the previous closing.
Market was volatile. March opened on a firmer note and traded with high volatility and frequently dropped and recovered to fall again and the last trading price was at lower circuit levels. Similarly, April opened on upward trend hitting the highest price of the day in the opening session itself. But, then kept on sliding amid high volatility and eventually ended much below the previous day's closing. In fact, the fall in the prices is viewed as “not according to the market fundamentals”, market sources told Business Line .
There were no activities on the spot. Sellers were not ready to sell in tandem with the declining prices in the futures market. Arrivals from the primary markets were also not there today. The turnover also showed limited activities.
However, the open interest showed good additional buying. Some liquidation was there in March contract which matured today and 322 tonnes of pepper were offered for delivery.
March contract on NCDEX decreased Rs1,665 to the last traded price of Rs 40,010 a quintal. April and May fell Rs 1,675 and Rs 1,605 respectively to the LTP for Rs 42,465 and Rs 43,400.
Total turnover moved up 84 tonnes to close at 9,027 tonnes.
Total open interest increased 259 tonnes indicating good additional buying to close at 10,233 tonnes.
March open interest dropped 124 tonnes to 322 tonnes which were offered for delivery. Apr and May open interest went up 273 tonnes and 122 tonnes respectively to close at 7,359 tonnes and 2,123 tonnes.
Spot prices fell Rs 800 in tandem with the futures market in tandem with the futures market trend to close at Rs 39,500 (ungarbled) and Rs 41,000 (MG 1) a quintal.
Indian parity in the international market was at $8,650 a tonne (c&f) Europe and $8,950 a tonne (c&f) USA. As the Vietnam farmers were not reportedly releasing their produce, the prices on the Singapore exchange was said to be firmer today.
Overseas trend
According to an overseas report today, Vietnam pepper was steady with following price indications:
Faq 500 g/l $6,400/6,500 a tonne (f.o.b.); Faq 550 g/l $6,750/6,850 (f.o.b.): White pepper double washed (depending on shippers) was at $9,500 (f.o.b.). China white pepper $9,500 (f.o.b.)
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