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Pepper futures on Friday bounced back on good buying support amid limited availability on the spot and on bullish activities.
All the contracts moved up substantially. Market opened in the morning easier and touched the lowest price of the day and then moved up and hit the highest price of the day before noon. Medium volatility was witnessed and then dropped sharply to pick up in the afternoon to end much above the previous day closing.
Bulls pushed up the market based on the “graph and chart prediction from the 'so called expert analysts of brokers of national level and recognised local brokers' that if the price crossed Rs 250 a kg now then it will touch Rs 320 a kg”. Based on this, they were sending buy calls and consequently, there was good additional purchases.
Many were buying spot and selling futures. Also, most of the investors/hedgers were buying farm grade pepper and selling futures, market sources told Business Line . Prudent investors, they said, were keeping farm grade pepper in their warehouses for future, they said.
There was no selling pressure on the spot.
The total turn over increased by over 6,000 tonnes from that of the previous day. Total net open position has also increased by over 700 tonnes.
April contract on the NCDEX increased Rs 459 to close at Rs 25,053 a quintal. May and June went up Rs 461 and Rs 440 respectively to close at Rs 25,442 and Rs 25,721 a quintal.
Total turn over increased 6,022 tonnes to close at 15,080 tonnes. Total open interest was up 721 tonnes to close at 11,933 tonnes.
April open interest declined by 72 tonnes while that of May and June increased 730 tonnes and 52 tonnes respectively to 4,327 tonnes and 434 tonnes.
Spot prices in tandem with the futures market and on buying support moved up by Rs 200 to close at Rs 23,200 (un-garbled) and Rs 24,000 (MG 1) a quintal.
Indian parity in the international market comes to $5,850 a tonne (c&f). However, some sales said to have taken place at $5,700-5,725 a tonne by those who had bought at Rs 10 below the April price, they said.
The actual price and availability situation in other origins is not available as no reports are emanating from the overseas markets, they said.
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