Pepper on Monday crashed with the contracts dropping to below the lower circuit level (lowest permissible trading rate of the day) on bearish reports from Vietnam and bearish activities from other quarters, according to trade sources.

Nov contract fell Rs 1,215 to close at Rs 34,330 a quintal while Dec and Jan dropped Rs 1,170 and Rs 1,205 respectively to close at Rs 34,705 and Rs 35,050.

Total turn over increased 14,439 tonnes to 17,181 tonnes. Total open interest increased 772 tonnes to 12,249 tonnes showing good purchases and yet the market fell, market sources told Business Line .

Nov, Dec and Jan open interest increased 466 tonnes, 300 tonnes and two tonnes respectively to close at 10,096 tonnes, 1,881 tonnes and 149 tonnes.

Spot prices fell in tandem with the futures market trend and not on any selling pressure by Rs 500 to close at Rs 33,300 (ungarbled) and Rs 34,800 (MG 1) a quintal.

Investors holding short position/sales in the exchange platform covered back their sales and released farm grade pepper at Rs 10 below the Nov delivery price. Leading exporters and others were covering and that in turn led to nearly 85-100 tonnes reportedly being traded in several directions. Bearish reports from Vietnam coupled with bearish activities from international free trade zones in domestic futures have influenced the market to touch the second lower circuit level today, they said. Everybody was taking advantage of every dip, they said. The materials traded were all from the investors.

Indian parity in the international market was at $7,550 a tonne (c&f) for Europe and $7,850 for the US and remained competitive, despite the decline in Vietnam prices. However, Indonesia was reportedly offering L Asta at around $8,500 a tonne.

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