Pepper futures head south

Pepper futures witnessed high volatility in the afternoon session when both the March and April contracts touched the day's peak and then declined in the closing session and ended below the previous day's closing.

The player, who has taken delivery of the 2,500 tonnes last month and is holding them, appears to have started liquidating. In fact, 616 tonnes of pepper were liquidated in March while switching over was limited, market sources told Business Line .

Farm grade

Some small quantity of farm grade pepper was traded at Rs 219 – Rs 222 a kg. Sellers were offering high range pepper at Rs 225 a kg but buyers were ready at Rs 222 – 223 a kg, they said.

March contract on the NCDEX declined by Rs 33 to close at Rs 22,747 a quintal. However, the last traded price (LTP) was down by Rs150 a quintal and because of the high volatility in the closing session, the drop has been worked out to Rs 33. April and May contracts slipped by Rs 16 and Rs 26 respectively to close at Rs 23,341 and Rs 23,669 a quintal.

Turnover, open interest

Total turnover dropped by 5,766 tonnes to close at 10,822 tonnes.

Total open interest declined 564 tonnes to close at 12,790 indicating good liquidation.

March open interest fell by 616 tonnes to close at 2,233 tonnes. April and May moved up by 13 tonnes and 44 tonnes respectively to close at 9,225 tonnes and 1,058 tonnes.

Spot prices remained unchanged at previous levels in thin trade at Rs 21,900 (ungarbled) and Rs 22,700 a quintal.

Indian parity in the international market at April and spot rates stood at $5,300 a tonne. Overseas buyers are on a wait and watch mode while no information is emanating from other origins, trade sources said.

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