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Pepper futures showed a declining trend in all nearby contracts except May, which has shown a slight increase over the previous day's closing.
Sentiments that there would be increased supply in the second quarter of the year, coupled with some profit booking, pulled the June and July contracts substantially down, market sources told Business Line . They said there were some arrivals at the terminal market today.
Waning confidence
Some covering for May was underway, keeping prices firm. However, the experience of defaults recently has been keeping the exporters wary. Their waning confidence has been helping spot prices rule at higher levels.
At the same time, the market has to come down for India to be competitive in the international market where the Indian parity is above other origins, they said.
May contract on NCDEX moved up by Rs 51 to close at Rs 30,378 a quintal. June and July contracts fell sharply by Rs 359 and Rs 357 respectively to close at Rs 29,870 and Rs 30,009 a quintal.
Turnover increased by 1,581 tonnes to 9,128 tonnes. Open interest increased by 525 tonnes to close at 23,562 tonnes.
May open interest moved up by 52 tonnes to 6,341 tonnes. June open interest increased by 498 tonnes to 15,112 tonnes. July open interest dropped by 59 tonnes to 1,537 tonnes.
Spot prices remained steady at previous closing levels of Rs 28,400 (ungarbled) and Rs 29,200 (MG 1) a quintal.
Indian parity in the international market was at $6,800 a tonne (fob) about $500 a above other origins.
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