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Pepper futures declined on Thursday in correction after shooting up yesterday and all contracts ended below previous day closing.
Reports of firmer markets in all other origins except Brazil pushed up the futures in the opening session itself. Then, as more and more sellers appeared the prices started dropping to the lowest levels of the day and then picked up to drop and closed below the previous day close.
High moisture
As the moisture content in the farm grade pepper is said to be more than 14 per cent as against the permissible 11 per cent due to protracted wet weather conditions prevailing the exporters were quoting lower rates but sellers were reluctant to part with. This phenomenon also aided the decline, market sources told Business Line .
Those holding speculative positions were switching over to September while some were liquidating.
Domestic demand is expected to pick up from next week, they said.
August contract on NCDEX dropped by Rs 239 to close at Rs 29,631 a quintal. September and October contracts fell by Rs 249 and Rs 277 respectively to close at Rs 30,135 and Rs 30,510 a quintal.
Turnover slips
Total turn over decreased by 2,589 tonnes to 8,050 tonnes. Total open interest dropped by 168 tonnes to 11,293 tonnes showing liquidation.
August open interest dropped by 713 tonnes to 3,258 tonnes while September increased by 543 tonnes on switching over to 6,319 tonnes. October declined by eight tonnes to 1,481 tonnes.
Spot falls
Spot prices in tandem with the futures market trend fell by Rs 100 to close at Rs 28,100 (ungarbled) and Rs 29,100 (MG1) a quintal.
Indian parity in the international market was at $6,800-6,825 a tonne (c&f) and remained competitive with Vietnam which is reportedly quoting $6,800 a tonne for Asta grade. In Indonesia activities are limited. Only Brazil is said to be offering cheaper, the trade said.
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