The pepper market on Monday slipped in the first two active contracts despite a rise in open interest.
The total volume showed a decline, indicating limited activities. Bearish activities are attributed to the decline in the prices.
The fundamentals were supporting bull operators. But the bear operators were trying to pull the market down by showing easier markets in Vietnam and all.
The local arms of international operators are allegedly trying to push the prices down and hence they were ready to sell valid stocks at below the July prices. The bull operators who are ready to invest in the commodity, realising fully the tight availability situation in the country, bought the quantity at the offered prices, as is evident from the increase in open interest in July and August, market sources told Business Line.
July contract on the NCDEX dropped by Rs 270 to the last traded price (LTP) of Rs 41,070 a quintal while August decreased by Rs 105 to the LTP of Rs 41,270 a quintal. September slightly moved up by Rs 80 to the LTP of Rs 41,500 a quintal.
Total turnover dropped by 388 tonnes to 2,153 tonnes. Total open interest increased by 286 tonnes showing additional buying.
July and August open interest increased by 144 tonnes and 145 tonnes respectively to close at 3,209 tonnes and 1,643 tonnes. August open interest just slipped by 3 tonnes to 76 tonnes.
Tight supply situation said to have forced many to cover from the exchange platform. Arrivals from the primary markets remained very thin and activities on the spot was limited and with matching demand and supply.
The spot prices therefore remained unchanged at the previous levels of Rs 38,800 (ungarbled) and Rs 40,300 (garbled) a quintal.