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Pepper futures witnessed high volatility on Monday as both the bulls and bears were actively trying to push up and pull down the market.
Eventually, the market was nearly steady with a marginal decline at the closing.
More dealers were seen ready to sell spot. Investors were buying spot and selling futures as ready pepper was cheaper. Some exporters were also buying ready pepper.
Karnataka crop
Harvesting is reportedly in full swing in Karnataka and consequently, arrivals have picked up. The produce is coming to Wayanad and sold as Pulpally and Bathery (Wayanad) pepper at Rs 240 a kg. High range pepper was being sold at Rs 242- Rs 244 a kg. Meanwhile, the material from the plains of north Malabar and Central Kerala was being sold at Rs 236 – Rs 237 a kg.
Some exporters were buying farm grade and converting it into MG 1 and reported to be selling to overseas buyers at $5,850 a tonne (c&f) when Indian parity at April exchange price is at $5,900 - $5,925 a tonne (c&f) today, trade sources told Business Line . “It gives the impression that there was buying interest at $5,825 - $5,850 a tonne (c&f)”, they claimed.
Holidays
North Indian and Karnataka and Maharashtra markets are closed today on account of different festivals.
The remaining days of the exchange functioning till the April maturity on April 20 will be reduced by two days of holidays on April 14 and 16. Meanwhile, Kerala-specific commodities such as rubber, coconut oil, pepper and cardamom would be traded on April 15 when the entire State, including financial institutions, banks and markets, would be observing holiday on account of Vishu. Therefore, no activity would be taking place on that day in the state and hence, the regulator should consider this factor seriously, they demanded.
These holidays have also influenced the market trend, they said.
April contract on the NCDEX declined by Rs 73 to close at Rs 25,351 a quintal. May contract dipped by Rs 26 to close at Rs 25,774 while that of June moved up by Rs 4 to close at Rs 26,111 a quintal.
Turnover up
Total turnover increased by 1,654 tonnes to close at 13,872 tonnes. Total open interest went up by 407 tonnes to 13,097 tonnes.
April open interest dropped by 155 tonnes to 6,972 tonnes while that of May and June increased by 485 tonnes and 35 tonnes respectively to close at 5,397 tonnes and 498 tonnes.
Spot prices, on strong buying interest, moved up by Rs 100 to close at Rs 23,600 (ungarbled) and Rs 24,400 (MG 1) a quintal.
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