Pepper futures continue to move up

Pepper futures continued their upward swing on Wednesday on buying support and bullish activity.

However, there was some selling interest in spot. Exporters were seen covering their positions.

Dealers from the high ranges and Wayanad were selling at the terminal market, following tightening of the borders by the sales tax department in Kerala in looking at the financial year closing, market sources told Business Line.

MG 1 was being sold at a March delivery price of Rs 22,350 a quintal.

Meanwhile, investors were selling April at Rs 228 a kg and buying spot at the March delivery price.

Open interest on the futures market increased today and the turnover has dropped.

The stock position in NCDEX accredited warehouses as on March 7 was 2,748 tonnes.

The March contract on the NCDEX increased by Rs 123 to close at Rs 22,350 a quintal. April and May moved up by Rs 186 and Rs 307 respectively to close at Rs 22,805 and Rs 23,028 a quintal.

The total turnover dropped by 1,507 tonnes to close at 5,229 tonnes. Total open interest increased by 528 tonnes to 13,202 tonnes. March open interest dropped by 54 tonnes to 6,659 tonnes. April and May open interest went up by 556 tonnes and 33 tonnes respectively to close at 5,648 tonnes and 629 tonnes.

Spot prices, trading in tandem with the futures market trend, moved up by Rs 100 to close at Rs 21,700 (ungarbled) and Rs 22,500 (MG 1) a quintal.

Indian parity in the international market was at $5,175 a tonne (c&f) and remained in line with other origins. Consequently, some orders were already in the pipeline and some more were expected, they said.