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The pepper market fell on reports of selling pressure in the high ranges on Monday as operators cued by the report pulled the market down. Consequently, all the active contracts closed much below the previous day’s closing.
Activities were limited as is evident from the fall in turnover. It remained volatile in almost all the sessions. February delivery opened on a firm note at Rs 38,170 a quintal and traded with volatility and moved up to Rs 38,200 a quintal in the opening session itself. Thereafter, prices started sliding throughout all other sessions.
High volatility
At the beginning of the closing session, it touched the lowest price of the day at Rs37,115 a quintal, down by Rs1,085. Throughout the closing session, trading was volatile and the last traded price was at Rs37,310 a quintal. However, the last half-hour average was recorded at Rs 37,315 a quintal.
Total arrivals from primary markets today stood at 35 tonnes and the entire quantity was sold out at Rs 385 to 405 a kg, depending upon the bulk density, moisture content and area of production, market sources said. More and more pepper is likely to come. But, non-availability of skilled workers to pluck the spikes is hampering harvesting, they added.
February contract on the NCDEX decreased by Rs 870 a quintal to close at Rs 37,315 a quintal. March and April dropped by Rs 420 and Rs 15 respectively a quintal to close at Rs 36,525 and 35,310 a quintal.
Turnover
Total turnover fell by 695 tonnes to close at 2,095 tonnes. Total open interest declined by 144 tonnes to close at 3,127 tonnes.
February open interest decreased by 185 tonnes to 1,143 tonnes while that of March moved up by 50 tonnes to 1,400 tonnes. April dropped by 15 tonnes to 435 tonnes.
Spot prices in tandem with the Futures market trend fell by Rs 300 a quintal to close at Rs38,800 (ungarbled) and Rs40,300 (MG 1) a quintal.
Indian parity in the international market was at $8,000 a tonne (c&f) at spot prices for Jan prompt shipment while February was at $7,200 a tonne (c&f) and Mar at $6,750 a tonne (c&f). Vietnam is reportedly offering 550 GL at $6,500 a tonne and 500 GL at $6,000 a tonne.
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