Pepper futures moved up Monday after witnessing the usual high volatility on good buying support coupled with bullish sentiments.

Exporters were said to have covered good quantity of farm grade pepper from High Ranges at Rs 225 – Rs 226 a kg and at Rs 222- Rs 223 a kg from Pulpally and Bathery in Wayanad.

Dealers were liquidating because of the financial year closure. If they held back stocks, they would have to seek refund from the Sales Tax Department, which, they said, would be time-consuming and hence, decided to liquidate. And yet, the market steered North on good buying support outweighing supply, trade sources told Business Line .

There was good domestic demand also as the masala manufacturing sector has become active after waiting for long for the prices to decline.

Turnover rises

April contract on NCDEX increased by Rs 101 to close at Rs 23,555 a quintal. May and June went up by Rs 63 and Rs 235 respectively to close at Rs 23,818 and Rs 24,176 a quintal.

Total turnover increased by 6,662 tonnes to 10,756 tonnes. Total open interest went up by 389 tonnes to 10,924 tonnes, showing good additional buying.

April open interest moved up by 154 tonnes to 9,198 tonnes while that of May and June increased by 217 tonnes and 16 tonnes respectively to close at 1,431 tonnes and 180 tonnes.

Spot trading

Spot prices on good buying support rose by Rs 200 to close at Rs 22,100 (ungarbled) and Rs 22,900 (MG 1) a quintal.

Indian parity in the international market remained competitive at $5,275 - $5,300 a tonne (c&f) as Indonesia was reported to have some problem in shipping out and hence overseas buyers are now looking for March and April supplies from India, export sources said.

Availability of valid pepper from the exchange and as well as some quantity of farm grade pepper from the primary markets, as the trade claimed, would support the overseas demand.

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