The pepper market plummeted on Thursday on weak demand and bearish sentiments spread by astrologers. All active contracts fell sharply to end much below the previous day’s closing.
When expert analysts were predicting rise in prices, astrologers forecast fall in prices from August 14. Taking the cue, bear operators got into the driving seat and pulled the market down “with a vengeance,” market sources told Business Line.
Meanwhile, domestic end users were covering only hand-to-mouth while there was no support from trading community because of the high prices, they said.
Stock position of commodities at NCDEX accredited warehouses in Kozhikode and Kochi as on August 16, 2012 is 2,922 tonnes.
During August 4 - 14, 1,009 tonnes were delivered under the staggered delivery system.
On the spot market, 15 tonnes of farm grade pepper arrived and it was traded at Rs 394, 398, 400 and 402 a kg depending upon the quality, grade and area of production.
August contract on the NCDEX fell by Rs 955 a quintal to the last traded price (LTP) of Rs 43,660 a quintal. September and October decreased by Rs 1,330 and 1,075 a quintal respectively to the LTP of Rs 42,280 and 42,730 a quintal.
Total turnover increased by 3,190 tonnes to 6,744 tonnes. Total open interest went up by 730 tonnes to 7,260 tonnes.
August open interest decreased by 257 tonnes to close at 682 tonnes while that of September and October increased by 659 tonnes and 323 tonnes respectively to 5,148 tonnes and 1,374 tonnes and yet the market faced a sharp fall in prices.
Spot prices in tandem with the futures market trend decreased by Rs 1,200 a quintal to close at Rs 39,400 (ungarbled) and Rs 40,900 (garbled) a quintal.
Indian parity in the international market dropped to $7,850 a tonne (c&f) for Europe and $8,150 a tonne (c&f) for the US and still remained much above other origins.
Keywords: Pepper futures market