Pepper remained sluggish on Wednesday with limited activities and ended in a mixed trend. January contracts moved up while nearby positions showed a decline.
However, the open interest moved up substantially while the turnover fell nearly 300 tonnes. No activities were seenon the spot. However, small quantities of new pepper mixed with old were arriving from certain pockets in Idukki district as old pepper. They were being offered at a discounted price, market sources told Business Line.
Activities were limited as some were waiting for the market to come down while the operators were trying to push up at every available opportunity, as is evident from the increase in the open interest.
The stock position of pepper at NCDEX accredited warehouses, as on December 19, which will come up for delivery on the 5th of every month following expiry of validity from January to June, was shown as 4,892 tonnes. Of this, 509 tonnes will come up on January 5. Also, on many occasions, merging of spot and futures prices, which should happen on the maturity day, does not happen often, they alleged. This issue should also warrant the attention of the regulator, they claimed. January contract on the NCDEX increased Rs 115 to close at Rs 35,565 a quintal. February and March dropped Rs 260 and Rs 160 respectively to close at Rs 34,510 and Rs 34,450 a quintal. Total turnover fell by 294 tonnes to 2,952 tonnes. Total open interest increased 674 tonnes to 8,114 tonnes.
January open interest increased 548 tonnes to 6,928 tonnes while that of February and March also moved up 86 tonnes and 27 tonnes respectively to close at 724 tonnes and 304 tonnes.
Spot prices remained unchanged at previous levels on matching demand and supply at Rs 34,000 (ungarbled) and Rs 35,500 (MG 1). Indian parity in the international market was at $7,100 a tonne (c&f) for Europe and 7,400 a tonne (c&f) for the US. Strengthening of the rupee against the dollar aided the rise to these levels, they said.