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Pepper futures on Thursday shot up on bullish activities and good buying support and all contracts closed above the upper circuit levels.
As the prices were ruling at lower levels, there were good buying in February and March and some liquidation in January. Taking this as a tool, the market was pushed up, which according to some in the trade, appears to be a retaliation for pulling down the market sharply in the opening days of the week. January has been artificially raised. “In fact, the futures delivery is going up while the spot is not raised in tandem with the futures,” they told Business Line.
Those who were holding validity expired and farm grade pepper stocks, hoping the spot will also increase in tandem with the futures, will find it difficult to deliver as there won't be enough time now left for them to process and deliver, they said. According to the trade, if one wants to deposit farm grade pepper in the exchange, it would take 5 to 6 days.
The market continues to remain in the hands of both the bear and bull operators who have made it a “gambling den and the regulator still continues to be a silent spectator,” they alleged.
January contract on the NCDEX shot up by Rs 1,205 a quintal to close at Rs 31,320 a quintal.
February and March increased by Rs 1,050 and Rs 845, respectively, to close at Rs 31,650 and Rs 31,550 a quintal.
Total turnover soared by 6,725 tonnes to close at 12,096 tonnes. Total open interest surged by 645 tonnes to 9,364 showing good buying.
January open interest dropped by 387 tonnes to 4,176 tonnes. February and March increased by 805 tonnes and 198 tonnes, respectively, to close at 3,089 tonnes and 1,120 tonnes showing good buying.
Spot prices in tandem with the futures market trend have gone up by Rs 500 to close at Rs 30,300 (ungarbled) and Rs 31,800 (MG 1) a quintal. There were no activities on the spot, they said.
Indian parity in the international market following the rise in the futures market coupled with appreciation of the rupee against the dollar went up to $6,550 - $6,600 a tonne (c&f) for Europe and $6,850 - $6,900 a tonne (c&f) for the US.
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