The pepper market on Thursday moved up on good buying support amid limited availability. All the active contracts ended above the previous day closing.

However, the activities were concentrated on first two contracts while there were some indications of the third contract gathering momentum as July is nearing to its maturity.

Whatever arriving at the terminal market is bought for processing and depositing in the exchange, market sources told Business Line .

Today 14 tonnes of farm grade pepper arrived and that was traded at Rs 397, Rs 400 and Rs 402, depending upon the quality and area of production, they said.

The availability is so tight here that the Malabar pepper could be sold at Rs 430 a kg on the exchange. Given this scenario, “Why should one talk about the Indian parity in the international markets and make the hue and cry that it is outpriced?” they asked.

July contract on the NCDEX increased by Rs 145 a quintal to the last traded price (LTP) of Rs 42,565 a quintal. August and September went up by Rs 135 and Rs 180 respectively to the LTP of Rs 43,010 and Rs 43,350 a quintal.

Turnover

Total turnover decreased by 777 tonnes to 3,531 tonnes. Total open interest increased by 58 tonnes to 5,233 tonnes showing some additional buying.

July open interest dropped by 212 tonnes to 633 tonnes while August and September increased by 233 tonnes and 36 tonnes respectively to 4,333 tonnes and 233 tonnes, indicating good switching over.

Spot prices in tandem with the futures market trend moved up by Rs100 a quintal to close at Rs39,700 (ungarbled) and Rs41,200 (MG 1) a quintal.

Indian parity in the international market was at $7,800 - $7,850 a tonne (c&f) Europe and $8,100 - $8,150 a tonne (c&f) USA and remained much above other origins.

Related Topics
comment COMMENT NOW