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Pepper futures dropped on bearish activities despite additional buying on the exchange platform on Friday.
Market witnessed high volatility. It opened on a firm note and went up to a peak and then dropped sharply and finally, ended below the previous closing.
Despite an increase of 398 tonnes in total open interest, the market fell and proved that the market was not working on fundamentals.
Spot trading
On the spot market, good quantity of farm grade pepper was traded. Leading exporters covered good quantity at Rs 218 – Rs 221 a kg. “In fact, all trading took place afloat”, trade sources told Business Line .
March contract on the NCDEX dropped by Rs182 to close at Rs 22,628 a quintal. April and May contracts fell by Rs118 and Rs144 respectively to close at Rs 23,030 and Rs 23,243 a quintal.
Total turnover increased by Rs 4,863 tonnes to close at 16,509 tonnes.
Total open interest went up by 398 tonnes showing good additional purchases.
Open interest
March open interest dropped by 713 tonnes to 5,390 tonnes while that of April increased by 1,020 tonnes, showing good switching over and additional buying, to close at 7,255 tonnes. May also moved up by 75 tonnes to 762 tonnes. Spot prices, in tandem with the futures market trend, declined by Rs 100 to close at Rs 21,800 (ungarbled) and Rs 22,600 (MG 1) a quintal.
Indian parity in the international market dropped to $5,200 - $5,225 a tonne (c&f) and remained at par with all other origins. Covering by exporters now gives the impression that overseas orders have been executed in the recent days, they said.
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