Pepper hits upper limit on fresh buying

Pepper prices spurted by its daily upper limit of 4% to Rs 1,550 in futures trade today as speculators created huge positions, triggered a speculations of lower output this season.

At the National Commodity and Derivatives Exchange, pepper for delivery in March spurted by Rs 1,550, or 4.01%, to Rs 40,200 per quintal with an open interest of 4,188 lots.

The April contract surged by Rs 1,565, or 4%, to Rs 40,645 per quintal in 4,781 lots.

Market analysts said fresh selling on speculations of a fall in output this season and pick-up in demand in the spot market mainly helped pepper futures to hit upper limit of 4%.