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Pepper futures fell sharply on Tuesday on bearish activities and on heavy liquidation and selling pressure.
“Weak bulls”, who had pushed up the market speculatively earlier, liquidated good quantities while investors entered the market and reportedly deposited nearly 350 tonnes of pepper, allegedly mixture of old (60 per cent) and new (40 per cent) between January 17 and 24, market sources told Business Line.
Since there were more buyers at Rs 3 and Rs 2.75 a kg below February prices, sellers withdrew. There were no sellers at the reduced price, sources said.
The bears got into the driving seat and began spreading the message that new pepper has started arriving at markets in north Malabar to down south and in the Coorg region of Karnataka, which has prompted weak bulls to liquidate.
Spot trading
On the spot market, there were sellers of new pepper and small quantities were traded at Rs 205 – Rs 206 a kg in the plains. High range good quality pepper was traded in small quantitiesat Rs 221 a kg in the morning.
However, when the futures market dropped in the afternoon, buyers withdrew even though sellers were ready at Rs 219 a kg, they said.
February contract dropped by Rs 423 to close at Rs 22,513 a quintal.
March and April fell by Rs 420 and Rs 492 respectively to close at Rs 22,903 and Rs 23,252 a quintal.
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