The pepper market on Tuesday was double floored on strong bearish activities and circular trading with all contracts falling sharply to lowest levels for the first time in several weeks.

The market opened on a downward trend and there was a fall of Rs 800 a quintal in just 30 minutes of the opening session. Overall open interest closed on a positive note and there was no selling pressure and yet the market was pulled down. There was liquidation in January and switching over and some buying were there for February and March, market sources told Business Line .

It is evident from the open interest and the turnover that there was circular trading just to show high turn over, they alleged. Similarly, bearish operators were in full control of the market and they were making concerted efforts to create a fear psychosis in the minds of speculative long position holders to liquidate so that they could buyback their sales. Even Dubai-based operators were also said to be active in the field to press the market down.

Meanwhile, exporters alleged that validity expired and farm grade material being offered and bought by some was of bad quality, and hence many were hesitant to buy as some of them contained high percentage of dust and external matters.

Even other origins are reportedly ‘stunned' by the bearish trend in the futures market, as there were no reasons to pull the market down and what ever happened today is against the market fundamentals, they claimed. “And yet, the regulator is remaining as a mere spectator,” they alleged.

January contract on the NCDEX fell by Rs 1,245 a quintal to close at Rs 29,905 a quintal. February and March decreased by Rs 1,260 and Rs 1,270, respectively, to close at Rs 30,265 and Rs 30,480 a quintal.

Total turnover increased by 4,343 tonnes to 6,722 tonnes showing good circular trading.

Total open interest moved up by only 47 tonnes to 9,291 tonnes showing some buying.

January open interest fell by 367 tonnes to 5,523 tonnes, while February and March increased by 333 tonnes and 21 tonnes, respectively, to close at 2,012 tonnes and 819 tonnes, showing switching over and plain buying.

Spot prices despite no selling pressure were notionally reduced by Rs 900 a quintal in tandem with the futures market trend to close at Rs 29,800 (ungarbled) and Rs 31,300 (MG 1) a quaintal.

Indian parity in the international market has dropped to $6,300-6,350 a tonne (c&f) and remained the cheapest today in the world market, they said. How the other would react to this trend is to be seen in the coming days, especially after the TET holidays in Vietnam, they said.

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