Pepper futures market fell on Monday on selling pressure and liquidation on bearish activities. March delivery long position holders liquidated good quantities while some switched over to April. Besides this, there was some selling pressure from Wayanad and Coorg.

Meanwhile, expert processors were reprocessing validity expired stocks from the investors at a cost of Rs 7 per kg and redepositing it in the warehouse.

Bear operators, who were in the driving seat, were said to be creating pressure on the “weak bull operators”, who had taken delivery of 2,500 tonnes earlier, to liquidate.

Earlier in the day, an estimated 50 to 60 tonnes of validity expired stocks were traded at Rs 5 below the March delivery price. But, as the market started declining later they withdrew and reduced the discount to Rs 4 a kg.

March contract on NCDEX fell by Rs 356 to close at Rs 22,065 a quintal. April and May dropped by Rs 355 and Rs 366, respectively, to close at Rs 22,431 and Rs 22,658 a quintal.

Total turnover increased by 3,588 tonnes to close at 7,698 tonnes. Total open interest fell by 270 tonnes to close at 13,126 tonnes. March open interest fell by 644 tonnes to close 7,243 tonnes. April and May open interests increased by 318 tonnes and 46 tonnes, respectively, to close at 5,043 tonnes and 620 tonnes. Spot prices fell on selling pressure by Rs 300 to close at Rs 21,500 (ungarbled) and Rs 22,300 (MG 1) a quintal.

Indian parity in the international market was at $5,175-$5,200 a tonne (c&f) and remained very much in line with other origins.

However, the buyers stayed away from the declining market expecting further drop in prices.

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