Pepper futures witnessed high volatility on Tuesday with the prices moving up sharply in the opening session and then falling to the lowest level in the forenoon session itself and then started recovering and touching the highest level and then it dropped and then moved up in the afternoon session and slided in high volatility and closed below the previous day's closing.

The bear operators tried to hammer down the market pointing out easier Vietnam market and heavy liquidation and switching to June.

Buyers withdraw

There were no sellers on the spot as the market fell and similarly buyers also withdrew.

Domestic buyers stayed away from the declining market.

Availability was only on the exchange platform.

About 1,600 tonnes of pepper will have their validity expired on June 5th and apprehensions are being raised as to who will take delivery by those operators who wanted to push the market down, market sources told Business Line .

“In fact, small and medium players are moving out from this gambling den”, they alleged.

April contract on the NCDEX declined by 31 tonnes while that of May and June dropped by Rs 51 and Rs 128 respectively to close at Rs 26,260 and Rs 26,693 a quintal.

Turnover up

Total turn over increased by 3,272 tonnes to 14,938 tonnes.

Total open interest increased by 460 tonnes to 13,785 tonnes and yet the market fell.

April open interest dropped by 411 tonnes to 636 tonnes. May and June increased by 341 tonnes and 552 tonnes respectively to close at 10,513 tonnes and 2,197 tonnes.

Spot steady

Spot prices remained steady for want of sellers and buyers at previous levels of Rs 24,800 (ungarbled) and Rs 25,600 (MG 1) a quintal.

Indian parity in the international market was at $6,300 a tonne (c&f) and remained nearly competitive.

Vietnam was offering FAQ 500 GL at $5,300 a tonne (f.o.b) and 550 GL at $5,650 a tonne (f.o.b). Brazil was firmer as the material available there is reportedly limited, trade sources said.

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