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The pepper market on Thursday witnessed high volatility and ended in a mixed trend with May dropping while other nearby deliveries moving up.
The market moved down to the lowest levels in the opening session. Thereafter, May moved sharply in the beginning of forenoon session and touched the highest price of the day to Rs 38,100 a quintal up by Rs 880.
Volatility
June also went up by Rs 880 to the highest levels of Rs 38,780 a quintal. Then the trade turned highly volatile.
At the beginning of the closing session, it dropped sharply and May ended below the previous day's closing while June and July closed above the previous day prices.
Stocks are said to be coming down on the exchange platform while May delivery prices were dropping to below spot prices and difference is about Rs 9 a kg.
Meanwhile, staggered delivery clause will become effective from May 14. Therefore, buying is likely to be less, market sources told Business Line .
As the market was firmer during much part of the day, sellers were quoting prices higher than that of yesterday and the buyers were reluctant and hence not much activities took place on the spot market.
However, importers were said to be showing interest to cover heavy bulk density pepper allegedly to balance the quality with the material imported for value-addition and re-export.
May contract on the NCDEX decreased by Rs 120 to the last traded price of Rs 37,300 a quintal. June and July went up by Rs 135 and Rs 320 respectively to the LTP of Rs 38,160 and Rs 38,820 a quintal.
Turnover
Total turnover increased by 1,806 tonnes to 3,870 tonnes. Total open interest declined by 77 tonnes to close at 5,593 tonnes.
May open interest fell by 381 tonnes to 2,491 tonnes showing liquidation while June and July increased by 298 tonnes and 6 tonnes respectively to 2,926 tonnes and 139 tonnes showing switching over.
Spot prices remained unchanged at previous levels of Rs36,700 (ungarbled) and Rs38,200 (MG 1) a quintal on limited activities.
Indian parity in the international market moved up marginally to $7,300 a tonne (c&f) for Europe and $7,600 a tonne (c&f) for the US. Strengthening of the rupee against the dollar also aided the rise in the parity.
Overseas trend
Vietnam market, according to a report today, remained unchanged. 500 GL was offered at $6,300 a tonne (fob) HCMC - prompt shipment. 550 GL was at $6,550 a tonne(fob) and V Asta at $6,950 a tonne (fob). White pepper double washed was offered at $9,300 a tonne.
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