The pepper market hit the second ceiling on Tuesday after reports of increase in prices in Brazilian and Vietnam.

Spot prices also hit the highest level, increasing by Rs 800 a quintal today. Taking this as a cue, the bull operators pushed up the prices.

Outstation investors are said to have bought exchange delivered pepper at Rs 3 below the September delivery price. New investors bought August and September delivery, market sources told Business Line .

There was a calculated move to push the market up by operators and it is evident from the high turnover and lower open interest. Hence, it was a circular trading confined to the computer screen, bear operators alleged, adding that “it was a bulls' coup”.

Brazil reported to have raised its B-Asta price to $6,750 from $6,350 a tonne. Vietnam is said to have raised its prices. Market in Indonesia was not active, because of the fasting month.

Overseas buyers were covering to meet their immediate requirement and that might have aided the price rise, said sources.

August contract on NCDEX shot up by Rs 1,192 to close at Rs 30,976 a quintal. September and October increased by Rs 1,218 and Rs 1,232, respectively, to close at Rs 31,666 and Rs 32,016 a quintal.

Turnover increased by 6,245 tonnes to 10,902 tonnes while open interest dropped by 171 tonnes to close at 11,121 tonnes.

August open interest fell by 360 tonnes to 1,202 tonnes while that of September and October moved up by 31 tonnes and 136 tonnes.

Spot prices shot up by Rs 800 and hit the highest price of Rs 301 and Rs 291 a kg for garbled and ungarbled, respectively.

Indian parity in the international market rose to $7,100 a tonne (c&f). The upward trend shown by other origins is construed as disequilibrium in demand and supply.

Related Topics