The pepper market on Wednesday shot up hitting the upper circuit levels and all contracts ended much above the previous day's closing.

Reports of a firmer Vietnam market, coupled with good overseas enquiries, aided the price rise, trade sources told Business Line .

Investors entered the market buying spot and selling futures. Sellers were limited and they were offering only at higher levels, they said.

Those who had postponed buying have started showing buying interest pushing up the demand, they said. At the same time, contrary to expectations, availability in the world market remained comparatively thin.

Indian domestic demand is also expected to pick up in the coming days for ensuing festival season, they said.

August contract on the NCDEX increased by Rs 1,149 tonnes to Rs 29,870 a quintal. September and October soared by Rs 1,169 and Rs 1,150, respectively, to close at Rs 30,384 and Rs 30,787 a quintal.

Total turnover went up by 2,849 tonnes to 10,639 tonnes. Total open interest declined by 135 tonnes to 11,461 tonnes.

August open interest dropped by 798 tonnes to 3,971 tonnes, while that of September increased by 655 tonnes to 5,776 tonnes. October open interest declined by 3 tonnes to 1,489 tonnes.

Spot prices increased by Rs 600 a quintal in tandem with the futures market trend and limited availability to Rs 28,200 (ungarbled) and Rs 29,200 (MG 1) a quintal.

Indian parity in the international market also moved up to around $6,850 a tonne (c&f). Meanwhile, reports from Vietnam today showed a firmer trend. FAQ 500 gl and 550 gl were quoted at $5,950 and 6,250 a tonne (fob) nett HCMC, while V Asta at $6,700 a tonne (fob) nett HCMC. Vietnam white pepper (doubled washed ) was at $8,500 a tonne (fob).

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