The pepper market moved up on buying support on Thursday. Consequently, all the active contracts ended above the previous day's closing.
Many were buying spot and selling futures. There was liquidation, switching over and additional buying.
Processors stationed in Kerala's Wayanad and Idukki districts were buying spot, processing and depositing it in the exchange and selling their Oct delivery as it was giving them good return, market sources told
Karnataka-based big planters were also reportedly depositing pepper in the exchange platform.
The difference between October delivery and spot prices has widened. Meanwhile, many growers and dealers holding stocks for many years were opting for selling as the prices were ruling above Rs 400 a kg.
On the spot, 30 tonnes of pepper arrived and they were all traded at Rs 401, Rs 406 and Rs 410 a kg while Rajkumari pepper was traded at Rs 412 a kg, they said.
Stock position of pepper at NCDEX accredited warehouses as on September 26 was at 3,368 tonnes of “dematted stock” and12 tonnes in process.
October contract on the NCDEX increased by 80 tonnes to the last traded price (LTP) of Rs 43,540 a quintal. November and December were up by Rs 410 and Rs 340 respectively to the LTP of Rs 42,950 and Rs 42,200 a quintal.
Turnover
Total turnover moved up by 32 tonnes to end at 1,421 tonnes. Total open interest increased by 62 tonnes to 7,931 tonnes.
October open interest decreased by 143 tonnes while that of November and December increased by 150 tonnes and 47 tonnes respectively to close at 1,627 tonnes and 369 tonnes showing liquidation, switching over and additional buying.
Spot prices remained unchanged at previous levels of Rs 40,100 (ungarbled) and Rs 41,600 (garbled) a quintal.
Indian parity in the international market was at $8,450 a tonne (c&f) at October prices while that at November and December prices were at $8,350 and $8,150 a tonne (c&f). Strengthening of the rupee against the dollar of late is also making Malabar uncompetitive in the international market.
Other origins were showing signs of upward move and given the present trend other origins might go up to $7,500 a tonne and at the same time if the Indian parity came down to $7,500 a tonne prices there could be a meeting point stabilizing the prices.
In the overseas markets, the pipelines are reportedly getting exhausted, the trade claimed.