Pepper futures last week witnessed bullish trend on tight availability due to “squeezing cornering of the market”. The long position holders are holding 1,047 tonnes of pepper validity, which will expire on Oct 5. Most of the players shifted to Oct/Nov delivery.

Arrivals were thin at four tonnes and were traded at Rs 392, Rs 396 and Rs 400 a kg, market sources told Business Line . Market was volatile, trade sources said. Firmer overseas trend also influenced the market, they said.

Domestic demand was slack due rains followed by flash floods in Gujarat and Rajasthan.

Currently, Tamil Nadu-based dealers from Cumbum, Theni and Erode were buying directly from growers and primary market dealers on cash-and-carry basis. Rains affected adversely the drying process.

Only fresh spikes in certain areas are benefited by the present rains which have paved the way for pollination, they said. Idukki, Wayanad and Kollam districts were reported to have received deficient rains.

The futures market showed an upward trend during the week and all the active contracts moved up. Sept, Oct and Nov increased by Rs 725, Rs 645 and Rs 305 respectively to the last traded price (LTP) of Rs 42,100, Rs 43,250 and Rs 43,200 a quintal.

Total turnover increased by 2,190 tonnes to 16,991 tonnes. Total open interest went up by 413 tonnes to 7,225 tonnes indicating switching over and additional buying.

Spot market witnessed and increase of Rs 400 a quintal to Rs 39,200 (ungarbled) and Rs 40,700 (Garbled). Indian Oleoresin industry was reportedly covering 300-400 GL immature pepper and light berries from Vietnam, Indonesia and Sri Lanka. They were buying them at $6,000 a tonne from Vietnam and $6,500 a tonne from Sri Lanka, market sources said. Consequently, asta grade pepper prices have moved up to $7,200 a tonne (Vietnam) and $6,750-6,800 a tonne (Indonesia Lampong Asta). Indian parity in the international market at the week end was at $7,800 a tonne (c&f) for Europe and $8,100 a tonne (c&f) for the US.

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