Pepper Recovered amid Limited Supply in March 2012

Future pepper market, pepper recovered on Thursday on buying interest amid limited supply, with active contracts except March moving up substantially. March contract on the NCDEX moved up by Rs 315 to last trading price (LTP) of Rs 40,425 a quintal. April and May increased by Rs 1,005 and Rs 1,235, respectively, to a LTP of Rs 42,550 and Rs 43,175 a quintal.

March open interest dropped by 289 tonnes to 1,281 tonnes, while that of April and May increased by 601 tonnes and 40 tonnes, respectively, to close at 7,055 tonnes and 1,666 tonnes. There was liquidation, switching over and good additional purchases.

Spot pepper prices, in tandem with the futures market trend and good domestic demand, moved up by Rs 900 to close at Rs 38,900 (ungarlbed) and Rs 40,400 (MG 1) a quintal.

The market was highly volatile and in the beginning of the closing session April and May contracts touched the second upper circuit level and then sharply declined to recover and end with the LTP much above the previous days last closing price. It fact, it was a battle ground for the bull and bear operators who were pushing up and pulling down the prices, the trade said adding “even spot sellers were getting confused.”

As the availability of the physical pepper is very tight with the prices ruling high those operators who feel bearish could very well here, market sources told Business Line.

There was good domestic demand and it was met by supplies from Karnataka. Inter-State dealers from Erode and Gudalur were buying high range pepper from Idukki for dispatching to North Indian markets, they said.

Arrivals from the primary markets of fresh pepper were very thin. There were no activities on the spot worth mentioning , they said.

Total turnover went up by 581 tonnes to 12,347 tonnes indicating limited activities. Total open interest increased by 352 tonnes to 10,389 tonnes.

Category: Pepper, pepper commodity, pepper future market, pepper market 2012, pepper prices march 2012, pepper supply, spot pepper prices