Pepper market ended in flooring of all the active contracts in circular trading by bear operators who got into the driving seat on Friday.
The manipulation by both the bear and the bull operators has, in fact, made the market “a gambling den,” market sources told Business Line.
Caught in between, the genuine hedgers are getting out of the market, they said.
However, 1,092 tonnes of pepper for November have been marked for delivery under the staggered delivery system and “that is a blessing for the genuine hedgers as it would facilitate them to move out of the market,” they said.
Arrivals from the primary markets were thin. Only four tonnes of pepper arrived today and of this, three tonnes were traded. Demand from North India was not forthcoming as the markets there are closed for holidays and are expected to become active only from next Monday.
November contract decreased by Rs 1,410 a quintal to close to Rs 40,025 a quintal. December and February fell by Rs 1,585 and Rs 1,320 respectively to close at Rs 39,190 and Rs 35,255 a quintal.
Total turnover increased by 2,862 tonne, nearly 180 per cent, to end at 4,457 tonnes indicating good circular trading to pull the market down.
Total open interest increased by 112 tonnes to close at 8,373 tonnes.
November open interest decreased by 154 tonnes while that of Dec and Feb rose by 245 tonnes and 10 tonnes respectively to close at 6,127 tonnes and 886 tonnes.
In tandem with the futures market trend, spot prices fell by Rs 700 a quintal to close at Rs 38,500 (ungarbled) and Rs 40,000 (MG 1) a quintal. There were no sellers as buyers were quoting low rates in the declining market.
Indian parity in the international market has come down to $7,500 a tonne (c&f) Europe and $7,800 a tonne (c&f) for USA, but still it remained much above other origins.