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The pepper market on Tuesday moved up on bullish activities on favourable market fundamentals after remaining volatile through out the day. All the active contracts increased substantially and ended much above the previous day closing.
Market opened on an easier trend and August was traded as low as Rs 43,050 a quintal from the opening price of Rs 43,155 a quintal.
Then it was traded with high volatility and during the closing hour it was pushed up from Rs 43,480 a quintal to Rs 44,050 a quintal to decline marginally and closed significantly above the previous day's closing price. Similar performance was seen in September also.
Some of the investors holding farm grade pepper but do not have processing facilities sold at Rs 25-28 below the August delivery price. They sold 20 to 25 tonnes to processors and investors who get them processed and then deposit them in the exchange platform.
Allegations
There were allegations that some of the EOUs importing pepper for value-addition and re-export were pushing the material into the exchange platform.
On the spot, some nine tonnes of pepper was traded at Rs 404, 408 and 410 a kg, depending on the quality, grade and area of production.
August contract on the NCDEX increased by Rs 440 a quintal to the last traded price (LTP) of Rs 43,590 a quintal. September and October prices went up by Rs 470 and Rs 420 respectively to the LTP of Rs 44,015 and Rs 44,360 a quintal.
Turnover
Total turnover dropped by 1,562 tonnes to 3,494 tonnes. Total open interest declined by 65 tonnes to 6,576 tonnes.
August open interest decreased by 174 tonnes to 5,287 tonnes while that of Sep and Oct moved up by 106 tonnes and 2 tonnes respectively to 1,208 tonnes and 74 tonnes.
Spot prices increased on buying support amid limited availability and in tandem with the futures market trend by Rs 300 to close at Rs 40,400 (ungarbled) and Rs41,900 (garbled).
Indian parity in the international market has shot up to $8,100 a tonne (c&f) Europe and $8,300 a tonne (c&) for the USA and remained much above other origins. The consistently high prices might force some of the supporting markets of MG 1 in the US, Europe, Canada, Australia and Japan which used to be ready to pay up to $400 a tonne premium to other origins. Keeping these markets in our fold is inevitable for the future, the market sources told Business Line .
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