The pepper market on Thursday declined marginally on liquidation and switching over.

Those who purchased spot and sold September delivery as a hedge were tendering at Rs 2-3 below September and buying back September. Investors were selling further up positions and this phenomenon aided the price decline, the trade sources said.

Meanwhile, multinational companies with multi-origin operations, were reportedly buying farm grade high range pepper from Rajkumari area actively and aggressively at sellers' price — Rs 300-310 a kg, they said.

They were said to be buying actively following reports that Vietnam market was very firm and a squeeze in availability of bulk density pepper there due to conversion of it into white and shortage of low bulk density clean pepper, market sources told Business Line . It gives the impression that there is a shortage prevailing in the market and notwithstanding the prices here dropped, they said. Vietnam was reportedly quoting $6,750 a tonne (fob) for 500 GL black pepper.

In the domestic market, not much activity was seen and the entire trading today was concentrated on the exchange platform, they said.

September contract on the NCDEX dropped by Rs 175 to close at Rs 32,901 a quintal. October and November fell by Rs 100 and Rs 152, respectively, to close at Rs 33,399 and Rs 33,596 a quintal. Total turnover increased by 1,060 tonnes to 10,595 tonnes. Total open interest fell by 314 tonnes to 11,543 tonnes.

September open interest fell by 697 tonnes to 8,325 tonnes, while that of October and November increased by 346 tonnes and 27 tonnes respectively to 2,838 tonnes and 197 tonnes.

Spot prices remained steady at Rs 30,100 (ungarbled) and Rs 31,100 (MG 1) a quintal.

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