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The pepper market went down on Friday on bearish activities despite no selling pressure at a time when other origins were reportedly firm.
“In fact, it has become a laughing stock and the overseas buyers and other origins are puzzled by the swinging of the market in the hands of the operators,” market sources alleged. They said exporters found it “difficult to make any commitments to overseas buyers as they have to make the offer overnight and here the prices are dwindling like anything and hence we are not able to fix a price.” On the other hand the exchange rates are also fluctuating.
The market remained highly volatile with circular trading. It opened with the highest price of the day for January and February and traded with high volatility. In forenoon they dropped and touched the lowest price of the day in the beginning of the session itself. Nearly Rs 960 was down in January and in February it was down by nearly Rs 850 a quintal. Traded with high volatility throughout in the afternoon, prices recovered marginally and ended after ups and downs below the previous day's closing. Total open interest was down by a meagre 39 tonnes. There was buying in January while some liquidation was there in February and March and yet the market fell, market sources told Business Line.
Inter-State dealers covered about 7 tonnes of new pepper directly from the growers/primary markets in Thrissur and some parts of Ernakulam district at Rs 290-300 a kg and had taken it away by paying 2 per cent CST, instead of buying from the terminal market where they will have to pay 4 per cent sales and tax , trade sources claimed.
January contract on the NCDEX dropped by Rs 555 to close at Rs 30,765 a quaintal. February and March decreased by Rs 460 and Rs 355, respectively, to close at Rs 31,200 and Rs 31,250 a quintal.
Total turnover fell by 6,124 tonnes to 5,972 tonnes. Total open interest declined by just 39 tonnes to close at 9,325 tonnes.
January open interest increased by 106 tonnes to 4,282 tonnes, while that of February and March declined by 202 tonnes and 16 tonnes, respectively, to 2,887 tonnes and 1,104 tonnes.
Spot prices in tandem with the futures trend despite no selling pressure were brought down by Rs200 to close at Rs 30,100 (ungarbled) and Rs 31,600 (MG 1) a quintal.
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