Comments
Pepper futures on Friday continued to stay hot on limited supply and bullish sentiments, with all the contracts moving up substantially.
The market witnessed high volatility and the bulls allegedly were making a cartel and pushing up the market.
There were no sellers on the spot as the growers and primary market dealers were holding their produce back anticipating that prices would cross Rs 300 a kg. Consequently, the arrivals at the terminal market were very limited.
There was no resistance to the efforts of the bulls. “The bulls were simply buying May first and liquidating April later”, trade sources said.
Meanwhile, unconfirmed reports said Vietnam was offering 500 GL pepper at $5,400 a tonne. There were also reports that some business has taken place at $6,000 and above a tonne (c&f) and the bulls cued by this were pushing the market, market sources told Business Line.
There was switching over and additional purchases evident from the rise in the open interest for May.
Limited supply
At present, there is reportedly a supply squeeze everywhere. The situation would depend on the pressure from Karnataka where harvesting is nearly over, they said.
Imports are also coming in for value addition and re-export, and part of it is also allegedly slipping into the domestic market, they said.
April contract on the NCDEX shot up by 441 to close at Rs 26,234 a quintal. May and June contracts increased by Rs 487 and Rs 601 respectively to close at Rs 26,757 and Rs 27,212 a quintal.
Total turnover soared by 6,852 tonnes to 18,506 tonnes. Total open interest increased by 380 tonnes to 14,644 tonnes, showing additional purchases.
April contract dropped by 778 tonnes to 5,051 tonnes while May contract shot up by 949 tonnes to close at 8,483 tonnes. June contract moved up by 169 tonnes to 788 tonnes.
Spot prices also shot up by Rs 400 on good demand amid limited availability to close at Rs 24,500 (ungarbled) and Rs 25,300(MG 1) a quintal.
International price
Indian parity in the international market was at $6,200 a tonne (c&f). No information is available from the overseas markets and other origins, market sources said.
Comments
COMMENT NOW
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.