The pepper market continued its upward swing on Friday on good buying support. Consequently, active contracts July and August moved up, albeit marginally.

Given the tight supply situation, good buying interest was seen everywhere. Even small and medium processors were buying pepper because of the sunshine prevailing for the past few days.

As the futures market was on the upward swing, bull operators were taking advantage of the market fundamentals. The production is claimed to be much lesser than what was projected earlier officially, market sources told Business Line .

Domestic demand is also likely to pick up now, they said. On the spot, 12 to 15 tonnes of farm grade pepper were traded today at Rs 387, Rs 390 and Rs 395, they said.

July contract on the NCDEX increased by Rs 295 to the last traded price of Rs 41,630 a quintal while August moved up by Rs 115 to the LTP of Rs 41,695 a quintal. September, however, slipped by Rs 75 to the LTP of Rs 42,040 a quintal.

Turnover

Total turnover decreased by 2,835 tonnes to 1,426 tonnes. Total open interest declined by 6 tonnes to 5,068 tonnes.

Spot prices in tandem with the futures market trend and good buying interest amid limited availability moved up by Rs 300 a quintal to close at Rs 38,800 (ungarbled) and Rs 40,300 (MG 1) a quintal.

Indian parity in the international market has gone up to $7,800 - $7,900 a tonne (c&f) for Europe and $8,100 - $8,200 a tonne (c&f) for the US and remained much above other origins.

Other origins were easier and Brazil was reportedly aggressive.

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