The pepper market bounced back on Tuesday on favourable market fundamentals and all the active contracts closed above the previous day's closing.
Activities were limited as is evident from the fall in total turnover.
The difference between February contract and the spot continued to remain wide for long. There is reportedly no valid stock available with the exchange.
An estimated 8,000 tonnes of stocks, including the huge quantity held by cartels, are locked up in the exchange warehouses, trade sources alleged.
There was good domestic demand, which was covered directly from the high ranges at Rs 380-385 a kg. At the same time, 18 tonnes of fresh pepper from southern districts having high moisture content and of low bulk density (LBD) arrived at the terminal market and were traded at Rs 320-350-357 a kg, they said. February contract on the NCDEX increased by Rs 165 a quintal to Rs 34,735 a quintal. March and April moved up by Rs 210 and Rs 155 respectively to Rs 33,990 and 33,765 a quintal.
Total turnover fell by 1,557 tonnes to close at 1,060 tonnes. Total open interest increased by 155 tonnes to close at 3,721 tonnes. Spot prices remained unchanged at Rs 37,200 (ungarlbed) and Rs 38,700 (MG 1) a quintal despite good domestic demand amid tight supply scenario.