The pepper market moved up substantially on bullish activities despite liquidation in the first two active contracts on Friday.
Operator cartels are understood to have cornered around 3,000 tonnes of pepper. “The market is being subjected to complete manipulation,” the trade alleged.
Prices were being pushed up in the hope that the end users would turn to the cartels, given the tight supply. In the process, genuine hedgers are moving away, having no strength to withstand their onslaught, market sources told Business Line.
They said small and medium players throughout the length and breadth of Kerala have lost their money.
Arrivals from the primary markets continued to remain thin. Eight tonnes of farm grade material arrived and that were traded at Rs 401, 406 and 410 a kg, depending upon the quality, grade and area of production.
Domestic demand was met by sales from Rajasthan and 30-40 tonnes of pepper were reportedly being moved out to consumer markets from Jammu to Nagpur. Karnataka was offering at Rs 405 a kg but the stock there was said to be nearly exhausted, they said.
September contract on the NCDEX increased by Rs 565 a quintal to the last traded price (LTP) of Rs 43,000 a quintal. October and November also went up by Rs 595 and Rs 340 respectively to the LTP of Rs 43,675 and Rs 43,240 a quintal.
Total turnover increased by 1,039 tonnes to 2,335 tonnes. Total open interest at the same time decreased by 86 tonnes to 6,635 tonnes.
September open interest dropped by 39 tonnes. 99 tonnes were tendered for delivery as the contract matured today.
October open interest fell by 135 tonnes to 5,608 tonnes showing liquidation while that of November moved up by 32 tonnes to 743 tonnes.
Spot prices in tandem with the futures market trend increased by Rs 500 a quintal to close at Rs 40,100 (ungarbled) and Rs 41,600(garbled) a quintal.
Indian parity in the international market shot up on increase in the futures market coupled with strengthening of the rupee against the dollar to $8,400 a tonne (c&f) for the Europe and $8,700 a tonne (c&f) for the US and remained totally out-priced.