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Pepper futures continued to show high volatility throughout Friday and headed south on liquidation.
Nov contract which matured today showed good liquidation and switching over.
There was not much buying interest from the overseas market because of the declining trend, while domestic demand was by and large met by supplies from the Madikeri region of Karnataka at Rs 325-328 a kg delivered anywhere in India.
At the same time some people here were reportedly ready to sell 500 – 510 GL pepper at Rs 328-330 a kg and 550 GL at Rs 334 a kg, but there were no takers.
However, there was good demand for high bulk density pepper from Idukki at Rs 340 a kg, but the material was available only in very limited quantities as it with growers who do not want to part with it at the current rates, market sources told Business Line.
Demand for this grade is expected to pick up in the coming days as the grinding season has begun. The industry prefers this grade for grinding because of its high output and penchancy, they said. Also those who postponed buying this variety and was covering only hand-to-mouth might also come out now, they claimed.
Nov contract on NCDEX fell by Rs 265 to close at Rs 34,200 a quintal. Dec and Jan declined by Rs 60 and Rs 65, respectively, to close at Rs 34,705 and Rs 34,950 a quintal.
Total turnover
Total turnover increased by 1,684 tonnes to close at 4,304 tonnes. Total open interest decreased by 347 tonnes showing good liquidation and closed at 11,101 tonnes.
Nov open interest dropped by 676 tonnes of this 463 tonnes would come up for delivery.
Dec and Jan increased by 309 tonnes and 20 tonnes respectively to close at 9,754 tonnes and 676 tonnes.
Spot prices continued to remain unchanged on limited activities at Rs 32,800 (ungarbled) and Rs 34,300 (MG 1) a quintal.
Indian parity in the international market dropped further, due to the fall in the futures market coupled with continued weakening of the rupee against the dollar, to $7,200-7,250 a tonne (c&f) Europe and $7,500-7,550 a tonne (c&f) for the US.
However, the overseas buyers are reportedly on a wait-and-watch approach hoping the prices might fall further.
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