Pepper futures declined on limited activities despite some buying interest for March and April contracts on Monday. The market opened firm and then declined to end below the previous trade’s close.
Some quantities of fresh pepper started trickling in and today, about six tonnes of pepper arrived. This coupled with slack domestic demand aided the decline, market sources told Business Line.
Overall, open interest has shown purchases while liquidation in February was meagre and yet, contrary to market fundamentals prices dropped, they said.
February contract on NCDEX decreased by Rs 275 to Rs 29,915 a quintal. March and April declined by Rs 190 and Rs 40 respectively to Rs 30,100 and Rs 30,380 a quintal.
Total turnover moved up by 125 tonnes. Total open interest increased by 105 tonnes to 8,330 tonnes.
February open interest declined by 13 tonnes to 4,410 tonnes, while that of March and April went up by 57 tonnes and 32 tonnes respectively to 2,561 tonnes and 614 tonnes.
Spot prices declined by Rs 100 in tandem with the futures market trend to close at Rs 29,900 (ungarbled) and Rs 31,400 (MG 1) a quintal.
Indian parity in the international market was at $6,500-6,550 a tonne (c&f) for Europe and $6,800-$6,850 a tonne (c&f) USA, they said. No overseas demand is forthcoming as buyers were waiting for the new Vietnam crop to hit the market, they added.
Vietnam black pepper price indications on Monday were faq min 500 G/L at $5,730 a tonne (f.o.b) HCMC and faq 550 G/Ll $6,050 a tonne (f.o.b), according to a report today.