Pepper futures turn hot on bullish sentiments

KOCHI, MARCH 16:

Pepper futures on Wednesday bounced back, turned hot on bullish sentiments with all nearby contracts hitting double ceiling.

The bull operators, who have been kept suppressed by the bear operators in recent days, gained strength and emerged with double force and steered the market to north, market sources told Business Line.

However, what is happening in the market is against the fundamentals, they alleged.

When the bears through their concerted efforts were pulling down the market, many companies with multi-origin operations were managing through their local arms to cover good quantities at lower rates. Consequently, the bears' efforts turned out to be futile, they said.

Only 15 tonnes of pepper will have their validity expired on April 5 and, hence, the balance quantity would remain valid and available for delivery, they said.

“The decision to take delivery of 2,500 tonnes last month appears to be right”, they claimed. According to the risk management practices of exchange, pre-expiry of margin three per cent a day for the last five days is being charged by the exchange and it is affecting only the weak operators, they said.

SPOT ACTIVITIES

On the spot activities were limited and whatever quantity arrived were covered by exporters at Rs 219-222 a kg, trade sources said.

March contract on the NCDEX shot up by Rs 877 to close at Rs 22,783 while that of April and May went up by Rs 896 and Rs 908 respectively to close at Rs 23,277 and Rs 23,596 a quintal. Total turnover increased by 4,383 tonnes to close at 11,658 tonnes.

OPEN INTEREST

Total open interest moved up by 115 tonnes showing additional buying of that much volume.

March open interest dropped 552 tonnes to 3,757 tonnes showing liquidation/switching over. April and May open interest went up by 438 tonnes and 169 tonnes respectively to close at 8,698 tonnes and 956 tonnes showing a switching over.