Pepper rises on bullish activities

Pepper market moved up on bullish activities and good buying interest.

All contracts increased substantially. Futures market was active as is evident from the sharp rise in the turn over. Good additional buying and switching over was seen.

The market opened at lowest level and remained so till few minutes before the closing session and then moved up sharply probably on reports of firmer Vietnam market coupled with some additional buying here.

Long position holders were buying additional July and selling June, market sources told Business Line .

Meanwhile, good quantities of Kodagu pepper, after slipping into Wayanad, has now arrivied in Idukki distrct, reliable sources said. According to them, limited supply from the local growers has prompted the dealers to bring the Kodagu pepper which has some resemblance with the HR material, they claimed.

June contract on the NCDEX increased by Rs 274 to close at Rs 29,763 a quintal. July and August went up by Rs 385 and Rs 390 to close at Rs 29,675 and Rs 29,700 a quintal.

Total turn over increased by 4,407 tonnes to close at 8,872 tonnes. Total open interest went up by 302 tonnes to 12,914 tonnes, indicating good additional buying.

June open interest dropped by 516 tonnes to 7,840 tonnes. July and August moved up by 781 tonnes and 40 tonnes, respectively, to 3,750 tonnes and 971 tonnes.

Spot prices were up by Rs200 on good buying support and in tandem with the futures market trend to close at 27,500 (ungarbled) and Rs 28,300 (MG 1) a quintal.

Indian parity in the international market increased to $6,900 a tonne (c&f) and remained totally out priced, trade sources said. Other origins were reportedly firmer and cued by these reports market has moved up. Vietnam was reportedly offering FAQ 500 GL at $5,600 a tonne and FAQ 550 GL at $5,900 a tonne and V Asta at $6,400 a tonne (all fob).

COMMENT NOW