Commodities

Pepper rules firm on tight supply

G. K. Nair Kochi | Updated on July 13, 2012 Published on July 13, 2012

pepper

The pepper futures and spot markets on Friday ruled steady. High volatility was witnessed as bull and bear operators showed their money power.

Fifteen tonnes of farm grade pepper were traded at Rs 399, Rs 401 and Rs 404 a kg depending upon quality, grade and area of production.

Domestic demand is reportedly met by direct purchases from the primary markets. North Indian dealers were covering from Malabar region of Kerala on cash-and-carry basis at Rs 400 a kg, market sources told Business Line.

Buyers from Tamil Nadu were covering from Idukki high range pepper at Rs 405 a kg while those from Gudalur were buying from Bathery in Wayanad.

“In fact, people were ready to buy at Rs 405 a kg. But sellers were limited. Everybody is said to be trying to buy directly from the farmers,” they said.

July contract on the NCDEX remained steady at previous level of Rs 42,550 a quintal. August and September increased by Rs 135 to the last traded price (LTP) of Rs 43,205 and Rs 43,525 a quintal.

Turnover

Total turnover soared by 2,666 tonnes to close at 6,197 tonnes. Total open interest dropped by 21 tonnes to 5,212 tonnes showing plain liquidation.

July open interest dropped by 261 tonnes showing liquidation and switching over. August and Sep moved up by 186 tonnes and 54 tonnes indicating good switching over/liquidation.

Spot prices in tandem with the futures market trend and tight supply scenario amid good demand moved up by Rs 200 to close at Rs 39,900 (ungarbled) and Rs 41,400 (garbled) a quintal.

Indian parity in the international market was at around $7,900 a tonne (c&f) Europe and around $8,200 a tonne (c&f) USA.

Published on July 13, 2012
This article is closed for comments.
Please Email the Editor