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The pepper market continued to run north Monday on good buying support and bullish trend in all the origins, with all the contracts moving up substantially while the spot for the first time in the history of the pepper trade hit the highest price of Rs 310 a kg (MG 1) and Rs 300 (ungarbled) a kg .
In recent days from Rs 285 a kg onwards many of the dealers were liquidating on the ready market on an average 60-65 tonnes daily.
Investors were buying at Rs 2-3 below September price exchange delivered pepper and in turn selling October.
Some of the national level brokers have also started buying exchange delivered pepper and selling Oct. In fact, the market is said to be in the hands of strong long position holders. Now, the situation is alleged to have reached such a stage that the small and medium players find it difficult to compete with these operators in the trade as they are being squeezed, trade sources told Business Line .
However, no demand either from the domestic or from the overseas market has come, even though “we are competitive at $7,4000 a tonne (c&f) in the international market”, they said.
Dealers and farmers in Kerala, they said, are slowly liquidating small quantities at the daily ruling prices while Karnataka growers are reportedly selling at Rs 285-290 a delivered anywhere in India.
September contract on the NCDEX shot up by Rs 575 to close at Rs 32,918 a quintal. October and November contracts increased by Rs 564 and Rs 725, respectively, to close at Rs 33,417 and Rs 33,701 a quintal.
Total turnover increased by 1,706 tonnes to 10,914 tonnes. Total open interest went up by 752 tonnes to additional buying and switching over to 11,647 tonnes.
September open interest moved up by 273 tonnes to 8,895 tonnes while October and November moved up by 431 tonnes and 30 tonnes, respectively, to 2,426 tonnes and 158 tonnes.
Spot prices on good buying support also shot up Rs 500 to close at the historic high Rs 30,000 (ungarbled) and Rs 31,000 (MG 1) a quintal.
Indian parity in the international market increased to the highest level of $7,400 a tonne and stayed competitive with other origins, especially Indonesia which is said to have quoted $7,500 a tonne and Vietnam Asta 570 GL at $7,200.
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