The pepper market on Thursday slipped on some selling pressure. As schools in Kerala are set to reopen, some growers were selling, albeit small quantities, and that aided the price decline.

There was domestic demand for quality pepper from upcountry markets even though some North Indian dealers were spreading bearish propaganda, trade sources claimed.

Small and medium growers who were in need for money to meet the school opening expenses were selling whatever quantity they were holding. But the volume arriving at the markets were much less compared with the usual selling pressure at this time of the year in the past, primary market dealers said.

There was liquidation in May and June while switchover was there to July. Turnover moved up marginally. Much of the activities were said to be taking place outside the exchange platform as both buyers and sellers preferred to give and take delivery outside the platform, market sources told Business Line .

They said validity of about 620 tonnes will expire on June 5. The balance in May delivery as of today is 338 tonnes, they said.

May contract on the NCDEX decreased by Rs 300 to the last traded price of Rs 37,170 tonnes. June and July declined by Rs 50 and 55 respectively to the LTP of Rs 38,050 and Rs 38,650 a quintal.

Turnover

Total turnover moved up by 43 tonnes to close at 2,027 tonnes. Total open interest decreased by 118 tonnes to 4,942 tonnes.

May and June open interest dropped by 92 tonnes and 151 tonnes respectively to 338 tonnes and 4,077 tonnes while July increased by 122 tonnes to 472 tonnes.

Spot prices dropped by Rs 200 on some selling pressure to close at Rs 36,500 (ungarbled) and Rs 38,000 (MG 1) a quintal and still remained much above the May future delivery prices.

Indian parity in the international market was at $7,125 a tonne (c&f) Europe and $7,425 a tonne (c&f) USA at the average price of May and June futures delivery prices, they said.

Related Topics
comment COMMENT NOW