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The uptrend in pepper prices continued on Wednesday. February contract on the National Multi Commodity Exchange ended higher but March contracts declined. However, spot prices continued their upsurge on strong domestic demand coupled with tight supplies.
There were more buyers than sellers. Traders, consumers and industrial users bought whatever pepper was available. This is the peak demand season with an estimated offtake of 4,000 tonnes a month. It is the main grinding season for masala as well as the papad industry, market sources told Business Line.
On the spot, 35 tonnes of semi-processed 550 gl pepper were traded at ₹535 a kg. Investors who were selling their stocks released from warehouses were also not seen in markets for the past couple of days. That has also created squeeze in the market forcing the buyers to buy at sellers demanded price, they said.
On the NMCE, February contracts increased by ₹155 to ₹54,265 a quintal. March contracts decreased by ₹900 to ₹54,200 a quintal. Turnover rose to 13 tonnes. Net open position dropped to 29 tonnes.
On the IPSTA, all the active contracts remained unchanged.
Spot prices shot up by ₹300 a quintal on strong demand to close at historically high level of ₹52,700 (ungarbled) and ₹54,700 (garbled) a quintal.
Export prices moved up by $9,025 cf Europe and $9,275 cf US and stayed totally outpriced.
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