Pepper prices continued their downward trend on Thursday on selling pressure believed to be because of the opening of the colleges/schools after annual vacation.

The net open interest declined while open interest moved up marginally, trade sources said. Buyers were quoting lower rates. New depositors from Karnataka and expert processors from Kerala were said to be depositing in the warehouses and an estimated 30 tonnes of pepper have been reportedly deposited.

On the spot, 78 tonnes of fresh pepper arrived from Kerala and Karnataka and they were all traded afloat at an average price of Rs 338 a kg. Pepper from Karnataka and the plains of Kerala were traded at Rs 333 while that from Pulpally and Battery and the High ranges of Kerala was sold at Rs 338 and Rs 343 respectively. Sellers were seen ready to discount their price because of high moisture content caused by the recent summer rains in the growing areas of Kerala, market sources told Business Line.

May contract on the NCDEX decreased by Rs 530 to close at Rs 35,495 a quintal. Total turnover moved up by 28 tonnes to close at 50 tonnes. Total open interest dropped by 37 tonnes to 129 tonnes.

Spot prices fell on selling pressure by Rs 200 to close at Rs 33,800 (ungarbled) and Rs 35,300 (garbled) a quintal.

Indian parity in the international market was at $6,675 (c&f) for prompt shipments while some were selling at $6,550 a tonne (c&f).

Overseas prices (in $/tonne): B Asta 6,375; Sri Lanka 500 GL FAQ 6,100(fob) Colombo.

Source: Business Line , May 17 . 2013