The pepper market continued its downward trend on circular trading, now by bear operators who got into the driving seat on Tuesday. Consequently, all active contracts were closed much below the previous day’s closing.
December contract opened at Rs 37,870 a quintal and moved up to Rs 38,125 a quintal up by Rs 255 in the mid-opening session and continued as such till the beginning of the forenoon session.
In the noon session, it started sliding with volatility and in the afternoon and closing session it witnessed high volatility with a soaring turnover as both bull and bear operators were pushing up and pulling down the market.
In the process, it fell and touched the lowest price, down by Rs 1,375 a quintal. In the closing hour, it recovered to the last traded price of Rs 37,500. However, the closing price was given as Rs 37,280 a quintal.
Turnover increased by nearly 228 per cent from that of yesterday in the circular trading. But total open interest increased by only 117 tonnes as against the rise of 5,890 tonnes in the turn over.
Meanwhile, some of the investors who were holding farm grade pepper bought back their December sales and liquidated physical pepper in the spot market. They sold the material of 500 - 525 GL bulk density at Rs 5 below the December delivery price.
An estimated 60-70 tonnes of the pepper were traded to different directions viz., Madhya Pradesh, Bihar, Jharkhand, Delhi etc, market sources told Business Line.
There has not been any arrivals from the primary market as sellers stayed away from the declining market. Buyers were also hesitant to buy as they were waiting for the new crop arrival which is expected to trickle in from mid-December.