Pepper futures on Wednesday moved up further despite liquidation and switching over on good buying interest while good buying support has pushed up the spot prices to the historic level of Rs 311 (ungarbled) and Rs 321 (MG 1) a kg, according to market sources.

Market was highly volatile due to the tug of war and all the contracts closed much above the previous day closing.

Investors were ready to buy exchange delivered pepper at Rs 3 above the Sept delivery price.

As the futures are ruling high, exporters and local arm of the multinational companies were also showing interest to cover spot pepper, which is comparatively cheaper.

As Vietnam has reportedly exhausted its pepper, buyers were showing interest to cover from India and some business is under way, market sources told Business Line .

Domestic demand also started picking up. Some were buying from Sakleshpur and Chickmangaluru farm grade pepper which is comparatively inferior to Coorg pepper which is being bought by Erode based dealers, they said.

Open interest

Total open interest fell sharply while total turn over increased by nearly 2,000 tonnes.

Sept contract on NCDEX moved up Rs 273 to close at Rs 33,930 a quintal. Oct and Nov increased Rs 332 and Rs 446 respectively to close at Rs 34,902 and Rs 35,430 a quintal.

Total turnover increased 1,923 tonnes to 9,546 tonnes. Total open interest fell 400 tonnes to 12,112 tonnes.

Sept open interest dropped 1,317 tonnes while that of Oct and Nov increased 811 tonnes and 80 tonnes respectively to close at 8,897 tonnes and 678 tonnes.

Spot prices

Spot prices moved up by Rs 400 on good buying support to close at the historic level of Rs 31,100 (ungarbled) and Rs 32,100 (MG 1) a quintal.

Indian parity in the international market was at $7,550 a tonne (c&f) and remained cheaper because of the sharp fall in the value of rupee against the dollar, they said. All the origins are firmer, they added.

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