The pepper market slipped Monday on liquidation amid limited activities. The market showed a firmer trend in the opening session and moved up to touch the highest price of the day and then traded with high volatility and dropped to end marginally below yesterday's closing.

There was good liquidation in August and some small switching over to September was also there. There was no seller on the spot as the growers were not ready to part with their produce at the current levels, trade sources told Business Line .

The current recessionary pressures in the US and Europe are unlikely to affect the pepper trade as it is an essential food item used in small quantity, they claimed. However, the currency strength of other origins against the dollar would determine the price trend in the world market, they said.

Turnover down

Aug contract on the NCDEX declined by Rs 99 to close at Rs 28,677 a quintal. Sept and Oct dropped by Rs 63 and Rs 110 respectively a quintal to close at Rs 29,251 and Rs 29,717.

Total turnover fell by 7,233 tonnes to 5,046 tonnes. Total open interest dropped by 529 tonnes to close at 11,459 tonnes showing good liquidation. Aug open interest dropped by 629 tonnes to 5,166 tonnes while that of Sept and Oct moved up by 89 tonnes and 10 tonnes respectively to 4,574 tonnes and 1,507 tonnes.

Spot prices declined by Rs 100 to close at Rs 27,600 (ungarbled) and Rs 28,600 (MG 1) a quintal.

Indian parity in the international market was at $6,700 a tonne (c&f) and remained out priced, they said.

Related Topics
comment COMMENT NOW