In the last week, pepper market was slightly volatile as usual as activities were limited mainly due to Holi holidays in north India and Easter in Kerala state. At the end of the week, prices remained mostly stable on a match with demand and supply.
The arrival of good quality pepper is limited. However, Karnataka pepper has been selling for Rs 325-335/kg delivered anywhere in India.
On the exchange, although the contract for delivery in April is about to expire, there is still no ready stock. Holders of long positions said they bought the hedge and chose to take delivery, market sources said Business Line know.
There is liquidation in April and May tenors. However, the short position holders bought back.
After it was reported that 34 tons of pepper belonging to a warehouse had been circulated, rumors were spread early last week that a lot of pepper had been locked up for a long time in the warehouse, which was allowed to circulate soon by the food safety agency. to release stock will create a surge in supply. However, the business alleges that 6,800 tons of this pepper have not been sampled for testing in designated laboratories before being released.
On the other hand, the trade said that as of December 20, 2012, only 63 tons existed unresolved.
Last week also saw sellers at reduced prices paid by buyers since March 31 or earlier. This phenomenon triggered investors to push the market down on Monday.
Meanwhile, agents of the pulverized pepper mill in Chennai and Erode were reported to purchase high density pepper from Idukki district, Kerala at the cash futures market price and execute it on the premises.
Trade believes that the domestic demand from next month will soon appear as most of the supplies across the country are still empty. The drought and disease outbreaks in some areas of Idukki have affected crops in the district, with some growers reporting very little yields. The same is said by growers in some areas of Wayanad. “Actual production may be less than 50,000 tonnes this season,” said a primary market agent in Kattappana.
The futures market shows a mixed trend with price ranges going up and down while spot prices remain flat.
For the week, on NCDEX, the April contract fell Rs 25 to close at Rs 35,950 a quintal ($ 6,550 a tonne) on Saturday while the May contract rose Rs 15 to close at Rs 35,935. /quintal (equivalent to 6,547 USD/ton).
Total trading volume fell 4,898 tonnes to 3,222 tonnes indicating a decrease in activity. Total open interest fell 169 tons to 2,120 tons.
Weekend. Spot prices remained unchanged at Rs 34,800/quintal (US$6,340/ton) for bucket pepper and Rs 36,300/quintal (US$6,614/ton) for MG 1 grade, in line with demand and provided.
Indian specialty pepper on the international market is priced at $6,925/ton (C&F) for fast delivery, while April and May delivery is priced at $6,850/ton (C&F) almost unchanged.
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