The pepper market declined marginally despite rise in open interest amid limited activities on Wednesday. All active contracts ended marginally below the previous day’s closing.
The market was highly volatile with November and October moving up and down and eventually ending marginally down, trade sources said.
Further up positions were seen going down. Nearly 100 tonnes of pepper were being deposited daily while almost an equal quantity was being taken out daily, market sources told
Some of the investors were selling validity expired stocks as there was no premium for further up positions and getting out of the market, they said.
While some of the investors who are holding validity expired stocks which expired on Sep 5 were selling them at a discount of Rs 5 to 10 depending upon quality, they said.
The increase in open interest especially in Nov contract indicates that somebody was buying further up positions at lower rates, they said.
On the spot, 20 tonnes of farm grade pepper arrived and the entire quantity was sold at Rs 401, 406 and 411 a kg depending upon quality, grade and area of production.
October contract on the NCDEX decreased by Rs 90 a quintal to the last traded price (LTP) of Rs 43,460 a quintal. November and December were down by Rs 70 and 160 respectively a quintal to the LTP of Rs 42,510 and 41,800 a quintal.
Turnover
Total turnover dropped by 129 tonnes to 1,389 tonnes. Total open interest increased by 310 tonnes to close at 7,869 tonnes showing good additional purchases.
October open interest moved up by 5 tonnes to 5,896 tonnes while that of Nov and Dec increased by 256 tonnes and 24 tonnes respectively to close at 1,477 tonnes and 322 tonnes.
Spot prices remained unchanged at previous levels of Rs40,100 (ungarbled) and Rs41,600 (garbled) a quintal on matching demand supply situation.
Indian parity in the international market was at $8,400 a tonne (c&f) at Oct rates and at Nov and Dec rates it was at $8,200 and $8,050 a tonne (c&f) while Feb would be further down, they said.