The pepper market after falling sharply yesterday bounced back today on bullish activities. Active contracts ended much above the previous closing.

There was good liquidation and yet the prices moved up. Market is said to have witnessed good circular trading also.

August contract opened at Rs 42,500 a quintal and then dropped to Rs 42,235 to shoot up with high volatility and increased by Rs 1,830 to Rs 44,350 a quintal .Then it declined and closed much above the previous day closing.

September delivery also behaved almost similarly. The market has allegedly again become a “gambling den,” market sources told Business Line .

Stock position on the exchange increased to 2,059 tonnes. On the spot, there was no selling pressure, they said.

Arrivals today were limited and seven tonnes of pepper were traded at Rs 408, Rs 412 and Rs 415 a kg depending on the quality, grade and area of production, they said.

August contract on the NCDEX increased by Rs 990 a quintal to the last traded price (LTP) of Rs 43,885 a quintal. September and October went up by Rs 1,015 and Rs 1,060 respectively to the LTP of Rs 43,730 and Rs 44,110 a quintal.

Turnover

Total turnover increased by 2,323 tonnes to 11,124 tonnes. Total open interest dropped by 404 tonnes, showing good liquidation.

August open interest decreased by 790 tonnes to close at 3,924 tonnes. September and October increased by 349 tonnes and 19 tonnes respectively to end at 3,144 tonnes and 564 tonnes showing liquidation and switching over.

Spot prices in tandem with the futures market and on lack of selling pressure increased by Rs 500 a quintal to close at Rs 40,800 (ungarbled) and Rs 42,300 (garbled) a quintal.

Indian parity in the international market increased and at Aug prices stood at $8,150 a tonne (c&f) for the Europe and $8,450 a tonne (c&f) for the USA and remained much above other origins.

Related Topics
comment COMMENT NOW