The pepper futures and spot markets fell on bearish sentiments created by the selling pressure in Karnataka and consequently all the active contracts ended below the previous day closing.
High volatility was witnessed in the market. Many people were seen hedging on the exchange platform so as to meet their future commitments.
Declining trend in the futures market has sent out bearish sentiments which in turn have created a fear psychosis in the farmers in Karnataka leading to more and more sellers coming forward to sell, market sources told Business Line.
Armed by this phenomenon the bear operators pulled the market down, they alleged.There were purchases for April and May as these deliveries were available at lower levels, they said.On the spot, Wayanad pepper from Pulpally and Batheri and from southern districts of Kerala was being offered at Rs 350 a kg. A total of 21 tonnes of fresh pepper arrived from all over Kerala and that were traded afloat at Rs 345, Rs 350 and Rs 355 depending upon quality and area of production.
Some of the multinational companies were reportedly showing interest to buy lower grade pepper from Karnataka, they said.
March contract on the NCDEX fell by Rs 400 to close at Rs 35,625 a quintal. April and May decreased by Rs 535 and Rs 190 respectively to close at Rs 34,100 and Rs 34,015.Total turn over increased by 344 tonnes to close at 1,746 tonnes. Total open interest went up by 228 tonnes indicating good purchasing.
March open interest dropped by 62 tonnes to 1,003 tonnes while that of April and May moved up by 245 tonnes and 45 tonnes respectively to close at 1,648 tonnes and 981 tonnes.
Spot prices, in tandem with the futures market trend and on Karnataka selling pressure, fell by Rs 600 to close at Rs 34,500 (ungarbled) and Rs 36,000 (MG 1) a quintal.Indian parity in the international market was at $6,900 a tonne (c&f) for March shipments while for April it was $6,700 and May $6,675.