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Pepper futures on Monday dropped on liquidation and switching over.
As the June contract matured today, 1,421 tonnes of material came up for delivery while 912 tonnes were switched over and 257 tonnes liquidated.
Exporters having commitments were not able to cover successfully as anticipated, market sources told Business Line .
Market was highly volatile as usual. June fell sharply while July and August declined marginally.
Spot activities
On the spot activities were limited. Some stockists were ready to buy while some bought Coorg pepper recently were ready to sell Coorg mixed high range pepper, they alleged.
June contract on NCDEX dropped by Rs 554 to close at Rs 28,822 a quintal. July and August declined by Rs 54 and Rs 29, respectively, to close at Rs 29,097 and Rs 29,067 a quintal.
Total turnover increased by 3,746 tonnes to 8,022 tonnes. Total open interest dropped by 257 tonnes to 10,667 tonnes showing liquidation.
June open interest dropped by 1,190 tonnes to 1,421 tonnes. July and August open interest increased by 912 tonnes and 22 tonnes, respectively, to 7,583 tonnes and 1,313 tonnes.
Spot prices dropped by Rs100 despite limited activities in tandem with the futures market trend to close at Rs 27,200 (ungarbled) and Rs 28,000 (MG 1) a quintal.
Indian parity in the international market was at $6,700 a tonne (c&f) and remained competitive with Indonesia which has quoted $6,550 a tonne (fob). However, Vietnam asta was cheaper at $6,450 a tonne (c&f) New York, they said.
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