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The pepper market showed a mixed trend with August moving up substantially on bullish activities . Operators who know that the current wet conditions would make processing and depositing difficult, are going for delivery and hence those who have short positions will suffer now, market sources told Business Line . It appears that the short position holders underestimated the capacity of long position holders, they said. There is said to be circular trading in September.
In fact, universally, the regulator would intervene, when there is a visible squeezing and cornering in the market by imposing heavy margins, they alleged.
On the spot, 15 tonnes of farm grade pepper arrived and 20 tonnes of material were traded at Rs 407, Rs 411, Rs413 a kg depending upon the bulk density, moisture content, area of production, they said. Activities were concentrated on September contract as 80 per cent of turn over in that delivery, while that in August and October were 9 per cent and 11 per cent, respectively.
August contract on the NCDEX increased by Rs 570 a quintal to the Last Traded Price (LTP) of Rs 44,550 a quintal.
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