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Pepper futures continued to head north on bullish sentiments and buying after witnessing volatility.
The market opened on a low note and saw volatile tradiong in the forenoon. However, in the afternoon it shot up and touched the highest price of the day, and then dropped to pick up late in the afternoon to end above the previous day's closing.
Exporters were covering farm-grade pepper at Rs 12, below the April delivery price in the forenoon. But trading slowed down later in the day.
Rise in the futures was also attributed to the alleged support received from international operators group by local operators, who were doing the “proprietary trading of the member”, which helped to push up the market, trade sources claimed.
Karnataka was selling at Rs 224-225 a kg, besides offering at Rs 233-235 a kg for a dispatch anywhere in India but only in the first week of April, market sources told Business Line .
More domestic buying is expected from the first week of next month. Buyers might turn towards Karnataka, the only place where stocks are avaliable now, they said.
April contract on the National Commodity and Derivatives Exchange increased by Rs 255 to close at Rs 24,828 a quintal. May and June contracts moved up by Rs 240 and Rs 194 to close at Rs 25,190 and Rs 25,484 a quintal.
Turn over dropped by 954 tonnes to 10,622 tonnes. Open interest increased by 477 tonnes, indicating additional buying, to close at 11,505 tonnes.
April open interest declined by 33 tonnes to 7,612 tonnes and May and June went up by 453 tonnes and 39 tonnes to 3,320 tonnes and 416 tonnes respectively, indicating additional buying in May.
Spot prices, in tandem with the futures trend and good buying. went up by Rs 200 to close at Rs 23,200 (ungarbled) and Rs 24,000 (MG1) a quintal.
Indian parity has gone up to $5,800-5,825 a tonne (c & f), above other origins, which are also firm, market sources added.
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