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Pepper futures in India continued to remain highly volatile consequent to the “tug of war” between the bull and bear operators.
There has been no stability in prices as it moves up one day and falls down the other day.
The international players operating in other origins and the producers there are reportedly closely watching the futures market trend here and accordingly they have been fixing their prices slightly below the Indian parity.
MG 1 price continued to rule high and remained totally out priced, trade sources here claimed.
On the spot, Karnataka has been selling its pepper at around Rs 260 a kg delivered anywhere in India and those who are concerned with the prices and impervious towards the quality have been buying it for catering to the retail markets in north India.
At this rate the Indian parity could be competitive overseas provided there are buyers for this material, trade sources told Business Line .
Weather conditions
Unfavourable weather conditions prevailing in the growing areas in the southern States, especially Kerala, are said to be hindering the drying and processing of the farm grade pepper having high moisture content.
The stock position for June is estimated at around4,300 tonnes and those who had already been allotted 3,300 tonnes in May last, are said to be ready to buy around 2,000 tonnes.
However, last week the bear operators had the upper hand and as a result all the contracts fell sharply.
June, July and August contracts dropped by Rs 873, Rs 984 and Rs 922 respectively to close at Rs 29,376, Rs 29,151 and Rs 29,096 a quintal.
Heavy liquidation led to the fall and that was caused by the additional margin of 3 per cent. The small and medium players resorted to liquidation, they said.
Turnover gains
Total turn over last week improved by 8,496 tonnes to 47,597 tonnes. Spot prices also fell sharply by Rs 500 in tandem with the futures market trend and on Karnataka selling pressure earlier last week to close at Rs 27,300 (ungarbled) and Rs 28,100 (MG 1) a quintal.
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