Pepper prices fell sharply with the August contracts hitting the second lowest circuit level, while others declined marginally from the previous day's closing.
September opened on a firm note and hit a high of Rs 42,580 and traded with high volatility and then dropped to Rs 41,750 down by Rs 830 a quintal from the highest price of the day and traded with high volatility and moved up slowly and closed marginally below the previous day closing.
There were only sellers and no buyers were seen. A total of 1,243 tonnes of pepper were delivered under the staggered delivery system from Aug 6 to Aug 16. The stock position at the accredited warehouses of the exchange as on Aug 17 stood at 3,025 tonnes and apart from this 66 tonnes were under processing, market sources told Business Line.
There were no sellers for high range pepper even at Rs 400 a kg. Heavy rain accompanied by winds and cloud bursts have brought the activities in the primary markets to a halt.
August contract on the NCDEX decreased sharply by Rs 1,740 a quintal to the last traded price (LTP) of Rs 41,915. Sept and Oct dropped by Rs 100 and Rs 155 respectively to the LTP of Rs 42,200 and Rs 43,615. Total turnover fell by 1,802 tonnes to 4,942 tonnes. Total open interest declined by 38 tonnes to close at 7,222 tonnes.
Aug open interest decreased y 420 tonnes to close at 262 tonnes while that of Sep and Oct increased by 134 tonens and 258 tonnes respectively to 5,282 tonnes and 1,632 tonnes.
As the spot is ruling below the Aug prices the sellers can get away with 1.5 per cent in the event of default, they said.
Spot prices were given a notional closing down by Rs 200 a quintal in tandem with the futures market at Rs 39,200 (ungarbled) and Rs 40,700 (MG 1) a quintal.
Indian parity in the international market was at $7,825 a tonne (c&f) for the Europe and $8,125 a tonne (c&f) US and still remained much below other origins, they said.