Pepper futures on Wednesday recovered slightly despite liquidation on bullish activities and buying support.

In the morning the market opened lower. But in the afternoon it recovered and closed marginally higher.

Many of the investors having farm-grade and validity expired pepper were getting the commodity processed and deposited in the warehouses. Validity expired pepper was available cheaper by Rs 12-Rs 13 a kg while the stock was being processed at Rs 9-Rs 10 a kg for depositing in the warehouse, market sources told Business Line .

Operators were bullish and keeping the market tight sending out indications that they might take delivery in June besides being interested to switch over, they said. At the same time, some of the overseas agencies were making propaganda that imported materials were being sold on the domestic market, in a bid to depress the market, they alleged.

On the spot, according to unconfirmed reports, limited quantities of Wayanad pepper were traded by leading exporters at Rs 274-Rs 275 a kg. However, apprehensions were being made about possible mixing with Coorg pepper, they said.

June contract on the NCDEX moved up by Rs 177 to close at Rs 29,637 a quintal. July and August were up by Rs 51 and Rs 56 respectively to close at Rs 29,273 and Rs 29,137 a quintal.

Turnover fell by 5,011 tonnes to close at 7,724 tonnes. Open interest dropped by 266 tonnes showing liquidation, and yet the market moved up.

June open interest dropped by 295 tonnes to 4,891 tonnes. July declined by 8 tonnes to 5,133 tonnes while that of August moved up by 21 tonnes to 1,225 tonnes.

Spot prices on limited activities ruled steady at previous levels of Rs 27,400 (ungarbled) and Rs28,200 (MG 1) a quintal.

Indian parity in the international market was at $6,700-$6,750 a tonne (c&f) and remained much above other origins, the sources added.

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