Pepper market dropped on very thin activities due to some alleged problems in depositing the material on Friday. All the active contracts closed much below the previous day’s closing.
Market opening with Nov at Rs 42,150 a quintal traded with high volatility and during the beginning of the forenoon session it dropped to Rs 41,700 down by Rs 450 a quintal and traded with high volatility. Then it moved up to 42,250, the highest price of the day from the lowest up by Rs 550 a quintal. In the closing session again dropped sharply and then recovered to close Rs 340 down a quintal.
Arrivals on the spot stood at eight tonnes and the entire quantity was sold. There was no selling pressure. Buyers were also not there. There was no demand from the domestic market, market sources told
Under the staggered delivery system as of Nov 8, 954 tonnes of pepper have been marked for delivery in Nov.
Activities were limited as is evident from both the turnover and open interest.
Nov contract on the NCDEX decreased by Rs 340 to the last traded price of Rs 41,960 a quintal. Dec and Feb were down by Rs 290 and Rs 510 respectively to the LTP of Rs 41,285 and Rs 36,640 a quintal.
Turnover
Total turnover moved up by 8 tonnes to 3,386 tonnes. Total open interest dropped by 18 tonnes to 8,462 tonnes. Nov open interest decreased by 163 tonnes while that of Dec and Feb moved up by 117 tonnes and 12 tonnes respectively to close at 5,722 tonnes and 821 tonnes.
Spot prices in tandem with the futures market trend dropped by Rs200 a quintal to close at Rs39,500 (ungarlbed) and Rs41,000 (MG 1) a quintal.
Indian parity in the international market was at $8,000 a tonne (c&f) for Europe and $8,300 a tonne (c&f) for the US and still remained out priced.