Pepper futures continued its northward run on Thursday on strong bullish activities and consequent squeezing in the exchange platform.

Operators who had taken delivery of 2,500 tonnes in February and holding it had shown interest to take good quantity in March, but availability on the exchange platform was claimed to be limited. “They are trying to squeeze the exchange platform”, market sources told Business Line.

Established local brokers were making sell calls while upcountry big brokers were sending out buy calls and in their tug of war the latter was appeared to have succeeded and the market witnessed high volatility in the last 45 minutes of Thursday's trading and pushed the market up significantly, they said.

Turnover has increased substantially while total open interest moved up only marginally. Arrivals at the terminal market picked up following tightening of the borders by Kerala Sales tax department which had arrested movement of pepper to neighbouring states evading tax, they said.

Some good domestic demand was there and some quantities were traded also, they said.

March contract on NCDEX increased by Rs 460 to close at Rs 22,810 a quintal. April and May contracts went up by Rs 343 and Rs 446 respectively to close at Rs 23,148 and Rs 23,387 a quintal.

Total turnover rose by 6,417 tonnes to close at 11,646 tonnes. Total open interest moved up by 22 tonnes to 13,224 tonnes.

March open interest dropped by 556 tonnes while that of April increased by 587 tonnes to 6,235 tonnes. May declined by 2 tonnes to 687 tonnes.

Spot prices in tandem with the futures market trend went up by Rs 200 to close at Rs 21,900 (ungarbled) and Rs 22,700 (MG 1) a quintal.

Indian parity in the international market was at $5,275 - $5,300 a tonne (c&f) and as the market started moving up buyers moved into sidelines. As all the origins and buyers are on a wait and watch mode no reports are emanating from them, they said.

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