Pepper turns hot on buying support

G. K. Nair Kochi | Updated on July 16, 2012 Published on July 16, 2012

The pepper market on Monday turned hot on strong buying support amid limited availability after witnessing high volatility. Bull operators eventually got the upperhand.

“The buyers, allegedly a cartel, were squeezing the short position holders and got the entire material available,” market sources told Business Line. The total open interest has shown substantial increase, indicating good additional buying.

Total turnover had soared, indicating high volatility and probably circular trading.

July contract on the NCDEX increased by Rs 735 to the last trading price (LTP) of Rs 43,500 a quintal. August and September went up by Rs 495 and Rs 305 respectively to the LTP of Rs 43,790 and Rs 43,900 a quintal.


Total turnover soared by 3,674 tonnes to 7,426 tonnes. Total open interest increased by 434 tonnes to 6,101 tonnes.

July open interest dropped by 49 tonnes to 305 tonnes while that of August and September increased by 379 tonnes and 103 tonnes respectively to close at 5,030 tonnes and 705 tonnes.

Spot prices were up by Rs 400 in tandem with the futures market trend and closed at Rs 40,500 (ungarbled) and Rs 42,000 (MG 1) a quaintal.

On the spot, 20 tonnes of farm grade pepper arrived and 40 tonnes were traded.

Indian parity in the international market was at $8,000 a tonne (c&f) Europe $8,300 a tonne (c&f) and remained much above other origins, i.e. over $1,000 a tonne.

Overseas trend

An overseas report on Monday said Vietnam pepper market was more or less unchanged but in weak undertone.Indications today on (fob) basis Hcmc, NSW, prompt shipment were black pepper FAQ min 500 GL was at $5,975 a tonne; min 550 G/L$6,200 a tonne ; V Asta min 570 G/L $6,700 a tonne and White double washed was at $8,850 a tonne.

Brazil new crop arrivals from Vitoria was reportedly traded last Friday at $6,000 a tonne fob basis . shippers now fully committed for July shipments. New crop from the port of Belem was slightly higher, the report said.

Lampong Asta indicated around $6,250 a tonne (fob) July/August shipment.Some others reportedly quotedup to $6,300/6,350 (fob).

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Published on July 16, 2012
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