Comments
Spot prices shot up further on Tuesday scaling new heights every day, while the futures were marginally up in two deliveries, while one witnessed a slight decline.
The market witnessed the usual high fluctuation today. October traded with high volatility in the opening session itself and crashed to the lowest levels to recover in the forenoon. In the afternoon it fell again and moved up further to the highest levels to go down sharply and closed marginally above the previous day closing.
As the Indian pepper continues to remain the cheapest in the world, some of the exporters were able to bag firm orders from overseas and were covering to meet their requirements.
Therefore, additional buying took place place. Material was available only on the exchange platform, as the growers were waiting for the prices to touch Rs 400 a kg.
Validity of nearly 450 tonnes of pepper would expire on November 5. The total stocks held by the exchange in its warehouses is estimated at around 5,200 tonnes. Investors are actively participating in the market by buying exchange delivered graded pepper and selling further out positions.
Long position holders are likely to opt for delivery, while some may be switching over, market sources told Business Line .
Meanwhile, stockists in Nagpur, Jalgaon, Gwalior, Indore, Jaipur and Delhi were reportedly liquidating their stocks at the highest ever prices prevailing at present, as from tomorrow onwards they would commence trading in dry fruits till Divali and there won't be any trading in spices. This would help the exporters to cover, they said.
October contract on NCDEX moved up by Rs 60 to close at Rs 36,690 a quintal. November was also marginally up by Rs 15 a quintal to close at Rs 37,550. December declined by Rs 35 to close at Rs 38,120 a quintal.
Total turnover
Total turnover fell sharply by 3,566 tonnes to 6,233 tonnes. Total open interest declined by 67 tonnes to 12,157 tonnes.
October open interest fell by 331 tonnes to 3,874 tonnes showing liquidation, while November and December moved up by 238 tonnes and 18 tonnes, respectively, to 7,218 tonnes and 907 tonnes indicating switching over.
Spot prices went up by Rs 200 to its historic levels at Rs 34,000 (ungarbled) and Rs 35,500 (MG 1) a quintal on good demand amid tight supply.
Indian parity in the international market continued to remain the cheapest at $8,050 - $8,100 a tonne (c&f) Europe and $8,300 - $8,350 a tonne (c&f) for US. Other origins were reportedly firm.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.