Pepper futures up on buying support

The pepper market moved up on buying support and bullish activities. It was highly volatile, with the prices moving up and down.

Switching over and additional buying were seen. Aug delivery is maturing on 19th, and just 14 working days are left. Only 143 tonnes of Aug cutting would be maturing on Sep 5.

Processors and exporters were showing interest to buy from the exchange platform as the conversion cost of farm-grade pepper is claimed to be high because of the high moisture content due to the wet weather conditions, market sources told Business Line.

Aug contract on the NCDEX moved up by Rs 37, to close at Rs 29,240 a quintal. Sept and Oct contracts went up by Rs 77 and Rs 121 respectively to close at Rs 29,701 and Rs 30,069 a quintal.

Total turn over dropped sharply by 6,195 tonnes to close at 4,084 tonnes. Total open interest moved up by 170 tonnes to 14,818 tonnes showing additional buying.

Aug open interest dropped by 107 tonnes to 9,522 tonnes while that of September and October moved up by 261 tonnes and 19 tonnes respectively to 4,116 tonnes and 989 tonnes.

Spot prices on limited activities remained unchanged at Rs 27,800 (ungarbled) and Rs 28,000 (MG 1) a quintal. Indian parity in the international market was at $6,850 - $6,875 a tonne (c&f) and remained nearly out priced at the moment. Brazil is said to be offering lower while Indonesia is said to have quoted $6,600 a tonne. Vietnam was also offering at lower rates, they said. However, overseas demand would be known only after a week as the buyers are still on vacation, they added.

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