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Pepper futures crashed for the second day on Friday at the hands of the market manipulators, with all nearby contracts hitting the second lower ceiling.
The market fell sharply even at a time when the total open interest had gone up substantially, the trade pointed out.
The market, therefore, appears to have gone into the hands of manipulators putting all the stakeholders especially, farmers, small and medium players and consumers, in utter confusion.
This kind of high volatility at the hands of the “crying babies” and “hungry babies” and consequent market manipulations are not in the interest of the trade and farmers. Therefore, the regulators need to look into these kind of activities and initiate measures to arrest it to prevent people from calling it a “casino,” trade sources told Business Line .
Reports in the north Indian dailies today of rejection of Indian pepper by the US buyers, is said to have boomeranged, they said.
Some of the short position holders were buying back their sales, while some were creating new sales positions.
On the spot there was no selling pressure. Now, it has to be seen as to how Karnataka sellers react to the decline in the market.
July contract on the NCDEX fell by Rs 1,168 to close at Rs 28,040 a quintal. August and September crashed by Rs 1.171 and Rs 1,170, respectively, to close at Rs 28,104 and Rs 28,086 a quintal.
Total turn over fell by 5,926 tonnes to 14,452 tonnes. Total open interest went up by 558 tonnes to 11,179 tonnes, showing good additional purchases.
July open interest fell by 414 tonnes to 7,590 tonnes, while that of August and September increased by 534 tonnes and 225 tonnes, respectively, to 2,485 tonnes and 505 tonnes.
Spot prices in tandem with the futures market trend dropped by Rs 500 to close at Rs 27,000 (ungarbled) and Rs27,800 (MG 1) a quintal.
Indonesia is not keen to reduce its prices in tandem with the Indian market trend. However, Vietnam reported to have reduced its prices for FAQ 500 GL by $100 - $150 a tonne to $5,400 a tonne (fob).
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