The pepper market moved up on Thursday despite fall in open interest amid limited activities.

First two active contracts increased while the third showed a marginal decline. Bull operators were seen squeezing the short positions (sales) in August delivery as they allegedly have no physical pepper with them against their sales. So far, only 651 tonnes of pepper have been marked for recently introduced staggered delivery system, trade sources claimed.

Rains for the last couple of days are said to have restricted the processing of the material for want of adequate and modern drying facilities. This in turn has created a fear psychosis about further squeezing of the supply, market sources told Business Line .

August contract on the NCDEX increased by Rs 325 to the last traded price of Rs 44,160 a quintal, while September increased by Rs 240 a quintal to the LTP of Rs 44,000 a quintal.

October contract declined by Rs 35 to the LTP of Rs 44,250 a quintal. Total turnover dropped by 182 tonnes to 1,999 tonnes. Total open interest decreased by 284 tonnes to 7,079 tonnes.

August and September open interest dropped by 143 and 143 tonnes, respectively, to close at 1,645 tonnes and 4,716 tonnes. October moved up by 1 tonne to 671 tonnes. Spot prices remained unchanged at Rs 40,700 (ungarbled) and Rs 42,200 (garbled) a quintal on limited activities.

Arrivals continued to remain very thin. On the spot, 15 tonnes were traded at Rs 407, Rs 411 and Rs 413 a kg, depending on the quality, grade and area of production, trade sources said. Indian parity in the international market has gone up to $8,250 a tonne (c&f) for Europe and $8,550 a tonne (c&f) for the US.

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