The pepper market bounced back on tight supply and consequent bullish sentiments on Wednesday. All the active contracts increased above the previous day’s closing.
Availability of the material is expected to be tight as indications are that contrary to the anticipation of the trade in general no liquidation is likely to happen.
This phenomenon coupled with no arrival from the primary markets has aided the price rise, market sources told
Pattern of the stock position of the exchange shows daily 50 tonnes are taken out and nearly 30-40 tonnes are deposited. Therefore, 1,017 tonnes of pepper validity of which is expiring on Oct 5 is unlikely to be liquidated.
The long position holders of this quantity have managed to get this pepper reprocessed and re-deposited through expert processors at lesser cost since Oct delivery is trading at a premium.
Hence, these operators may opt for switching over their positions to Oct/Nov sales rather than opting for delivery in Sep, they predicted.
Sep contract on the NCDEX increased by Rs 600 a quintal to Rs 42,000. Oct and Nov went up by Rs 590 and Rs 655 respectively to Rs 43,190 and Rs 43,135 a quintal.
Total turn over increased by 258 tonnes to 1,746 tonnes. Total open interest declined by five tonnes to 7,049 tonnes.
Sep open interest decreased by 79 tonnes to 598 tonnes while Oct and Nov increased by 38 tonnes and 22 tonnes respectively to close at 5,791 tonnes and 583 tonnes.
Spot prices, in tandem with the futures market trend and tight availability, increased by Rs 200 to Rs 39,200 (ungarbled) and Rs 40,700 (garbled) a quintal.
Indian parity in the international market has gone up on rise in futures market andstrengthening of the rupee against the dollar to $7,900 a tonne (c&f) Europe and $8,200 a tonne (c&f) US.