Pepper futures recovered on Tuesday on bullish reports and all the contracts moved up. In spite of the net open interest going down significantly, the market moved up today and “it is nothing but contradiction of market realities and fundamentals”, market sources told Business Line .

They alleged that the market was not adhering to the fundamentals and, instead, it was running on “malicious/ fictitious reports from the so-called analysts. Availability of pepper was from the investors who were selling at a discount. Once the prices dropped, they withdrew reducing the discount and as the difference between March and April widened, they switched over to April. Other investors handed over to expert processors their validity-expired stocks for reprocessing it into MG 1 and got it deposited in the exchange warehouses, they said.

Karnataka pepper has started arriving and it is being delivered at Rs 227-228 a kg anywhere in India, they said. March contract on NCDEX moved up by Rs 162 to close at Rs 22,227 a quintal. April and May went up Rs 188 and Rs149 respectively to close at Rs 22,619 and Rs 22,847.

Total turnover dropped 962 tonnes to close at 6,736 tonnes. Total open interest fell 452 tonnes to 12,674 and yet the market moved up. March open interest dropped 530 tonnes while April and May moved up by only 49 and 36 tonnes respectively to close at 5,092 and 656 tonnes. Spot prices moved up in tandem with the futures market trend by Rs 100 to close at Rs 21,600 (ungarbled) and Rs 22,400 (MG 1) a quintal. Indian parity in the international market remained nearly competitive at $5,200 a tonne (c&f).

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