Pepper futures on Wednesday gained on buying interest from exporters and interstate dealers.
Withdrawal of strike at the Kochi port coupled with buying by dealers in Jharkhand and Bihar of farm-grade pepper also pushed up the market. There was aggressive buying for March delivery.
Investors continued to liquidate and bought back their sales. Absence of badla and better storage at the exchange warehouse helped exporters in getting pepper. Exporters also bought farm grade pepper to meet pending orders.
They bought farm-grade pepper at Rs 223 a kg, while dealers from Jharkhand and Bihar bought farm-grade low-bulk-density pepper at Rs 225 a kg. Because of direct buying by interstate dealers arrivals at the terminal market continued to remain thin.
On Wednesday, arrivals stood at only around 60 bags. “Much of the produce is bypassing or going afloat. The domestic market seems to be full of tax evaders who buy at terminal market price from the primary markets,” trade sources alleged.
Market opened on an easier note and the trend continued till noon. As the reports of the port strike being withdrawn arrived, the market hit the day's high. The market remained volatile and ended above the previous day's closing.
Prices
February contract on the National Commodity and Derivatives Exchange moved up by Rs 130 to close at Rs 23,290 a quintal. March and April contracts went up by Rs 129 and Rs 124 to close at Rs 23,290 a quintal and Rs 23,811 a quintal.
Turnover dropped by 3,703 tonnes to 11,220 tonnes. Open interest increased by 741 tonnes to close at 16,508 tonnes.
February open interest increased by 50 tonnes while that of March soared by 662 tonnes showing additional buying to close at 7,118 tonnes. April moved up by 23 tonnes to 574 tonnes.
Spot prices on good buying support moved up by Rs 100 to close at Rs 22,000 a quintal (ungarbled) and Rs 22,800 a quintal (MG1).
Some in the trade felt that it may not advisable for the growers to hold back their produce at present, when the prices are ruling at moderately higher levels. Already Vietnam crop has entered the market and is being offered at lower levels. The crop size is not clearly known, hence it is difficult to predict the price trend in the coming days, they said.
Strengthening of the rupee coupled with an upward swing in the futures market kept the Indian parity above other origins, leaving no chances for orders to come to India. It has become more difficult now that Vietnam has started offering cheap.
Indian parity remained out-priced at $5,300-5,325 a tonne (c & f), they said.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.