Pepper market on Tuesday headed north on local bullish sentiments due to thin arrivals of the new crop and reports of near-exhaustion of old stocks.
However, prices were stable to slightly easier in overseas markets.
Vietnam was reportedly offering slightly below us 500 GL at $6,225 a tonne, market sources said.

There was good liquidation in January and some switching over to February, evident from the open interest that showed a negative trend.
Turnover also showed a decline.

January contract on the NCDEX increased by Rs 550 a quintal to close at Rs 31,190 while February and March went up by Rs 560 and Rs 605 respectively to close at Rs 31,790 and Rs 32,005 a quintal.

Total turnover fell by 989 tonnes to close at 4,292 tonnes. Total open interest decreased by 337 tonnes to 8,555 tonnes.

January open interest fell by 569 tonnes to close at 2,586 tonnes showing liquidation and switching over as the delivery is going to mature on January 20. February open interested increased by 299 tonnes to 3,827 tonnes while March declined by 77 tonnes to close at 1,054 tonnes.
Spot prices in tandem with the futures market trend and thin arrivals moved up by Rs 200 to close at Rs 30,300 (ungarbled) and Rs 31,800 (MG 1) a quintal.

In the local market, thin arrivals of the new crop has created apprehensions in the minds of the trade of a possible squeeze in supply and that in turn has resulted in spreading bullish sentiments in the market, trade sources said.

At the same time, domestic demand is yet to pick up, they said.

Indian parity in the international market was at around $6,600 a tonne for Asta grade and remained nearly in line with other origins, they said.



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