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Pepper futures dropped on Tuesday as bear operators gained an upper hand in their tug of war with bull operators amidst high volatility.
The market fell on the propaganda that there was heavy selling in Karnataka and after the Id-ul-Fitr holidays Indonesia could be coming out with large quantity of pepper in the world market. “There was selling pressure but it matched the demand,” market sources claimed.
All the contracts dropped even though there was not much liquidation in September, trade sources said.
There was heavy selling in Karnataka and high ranges of Idukki following emergence of good demand from upcountry. Karnataka pepper was reportedly being dispatched on an average of 4 –5 loads daily on cash and carry basis at Rs 305 a kg and delivered anywhere in India.
High range pepper from Idukki was being sold at Rs 307, Rs 308 and high bulk density moisture less pepper at Rs 309 by investors, local arm of multinational companies and exporters. There was a buying spree in the primary markets and consequently the selling pressure was not at all felt, market sources told Business Line .
Activities were limited in general on the exchange, as a result the turnover fell sharply, while the total net open position increased indicating additional buying, they said, adding that yet the market dropped
September last traded price (LTP) was down Rs 100 to Rs 33,050 a quintal, while that of Oct and Nov slipped by Rs 195 and Rs 270 respectively to Rs 33,619 and Rs 34,050 a quintal.
Total turnover fell by 2,455 tonnes to 4,389 tonnes. The total open interest increased by 123 tonnes to 11,766 tonnes.
Sep open interest declined by 15 tonnes to 5,900 tonnes while that of Oct and Nov moved up by 136 tonnes and 2 tonnes respectively to 5,283 tonnes and 392 tonnes.
Spot prices ruled steady on matching demand and supply at the previous levels of Rs30,400 (ungarbled) and Rs31,400 (MG 1) a quintal.
Indian parity in the international market was at around $7,550 a tonne (c&f) and stayed in line with other origins, they claimed.
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