Pepper market recovered in correction on Monday after being overplayed by bear operators in recent days.
The market opened on a low note and then moved up by Rs 700 to touch the level of Rs 40,300 a quintal in forenoon. Then it traded with high volatility
. The last traded price for November was at Rs 40,150 a quintal. However, the closing price (last half-an-hour average) was at Rs 40,180 a quintal.
There was liquidation, switching over and additional buying as is evident from the rise in open interest.
Spot trade
On the spot, some seven tonnes of farm grade pepper arrived and of this 5 tonnes were sold. Arrivals appear to have slackened as those who wanted to sell might have liquidated when the prices were ruling high.
Some domestic demand is also expected in coming days for catering to the winter requirement, market sources told Business Line .
So far, 1,340 tonnes of pepper has been marked for delivery under staggered delivery system and the bull operators are likely to take the delivery, they said. The outstanding position in December has soared to 6,539 tonnes which, the sources claimed, is “excessive speculative position built up in December.”
November contract on the NCDEX increased by Rs 575 to close at Rs 40,180 a quintal while December and February went up by Rs 405 and Rs 730 respectively to close at Rs 39,150 and Rs 36,370 a quintal.
Turnover
Total turnover decreased by 1,123 tonnes to close at 3,007 tonnes. Total open interest rose by 161 tonnes to close at 8,529 tonnes indicating additional buying.
November open interest fell by 226 tonnes to 600 tonnes while that of December and February increased by 217 tonnes and 155 tonnes to close at 6,529 tonnes and 1,144 tonnes.
Spot prices in tandem with the futures market trend increased by Rs200 to close at Rs38,200 (ungarbled) and Rs39,700 a quintal.
Indian parity in the international market moved up to $7,600 a tonne (c&f) Europe and $7,900 a tonne (c&f) for the US and remained out-priced.