Pepper futures continued to fall on bearish activities despite fundamentals being the contrary. Investors were selling spot at a discount to March delivery price, according to trade soruces.

The March contract on the NCDEX dropped by Rs 178 to Rs 22,534 a quintal. April and May fell Rs 160 and Rs 156, respectively to Rs 22,759 and Rs 22,979 a quintal.

The total turnover increased by 3,290 tonnes to 6,331 tonnes. The total open interest increased by 261 tonnes to 12,509 tonnes indicating additional purchases and yet the market declined.

The March open interest dropped by 40 tonnes to 8,865 tonnes. April and May open interest moved up by 257 tonnes and 32 tonnes, respectively to close at 2,983 tonnes and 453 tonnes.

Spot prices remained unchanged at previous levels of Rs 22,000 (ungarbled) and Rs 22,800 (MG 1) a quintal.

In the international market all other origins ruled firm and the Indian parity remained in line with them at $5,225 - $5,325 a tonne (c&f). However, buyers are still waiting, hoping the Vietnam new crop would arrive in large quantity pulling down the prices down.

Published on February 28, 2011