Pepper futures on Thursday rebounded on good buying support amid limited supply.

Those holding farm grade pepper and validity-expired stocks sold on the spot and bought back their sales at higher and higher prices which in turn aided the price rise with Oct delivery touching the ceiling today, market sources told Business Line .

The market was highly volatile as usual and the Oct delivery touched the ceiling at the closing minutes of the final session on buying interest.

There was additional buying on the exchange and in fact the activities were limited. There was no selling of spot pepper. In fact, the entire activity could be viewed as purely technical, they claimed.

Some of the exporters who were holding positions were opting for delivery and that also made the market bullish, they said.

In the Oct contract, 860 tonnes of pepper were delivered on maturity of the contract today. There was switching over to Nov and Dec, they said.

October contract on NCDEX shot up Rs1,055 to close at Rs 36,215 a quintal while that of Nov and Dec increased Rs 630 and Rs 615 respectively to close at Rs 35,975 and Rs 36,325.

Total turn over dropped 1,649 tonnes to 5,550 tonnes. Total open interest moved up 204 tonnes to 11,771 tonnes.

Oct open interest was down 77 tonnes to 860 tonnes (delivered) while that of Nov and Dec increased 193 tonnes and 86 tonnes respectively to close at 9,275 tonnes and 1,408 tonnes. Spot prices in tandem with the upward trend in the futures market and good demand amid limited supply increased by Rs 300 to close at Rs 33,900 (ungarbled) and Rs 35,400 (MG 1) a quintal.

Indian parity in the international market was at $7,900-7,950 a tonne (c&f) for Europe and $8,050 a tonne (c&f) for the US and continued to remain competitive. However, Vietnam was reportedly easier slightly, they said.

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