Pepper on Tuesday dropped on bearish activities and liquidation amid slow buying. Unfavourable weather conditions have also restricted the activities.

Those holding goods were selling while some were buying back their sales.

Contrary to normal situation the futures market went up while the spot prices have not moved up in tandem with the futures trend.

The peculiar situation prevalent in the market is making the investing community to loose interest in the pepper trade, market sources told Business Line . “It is becoming unfavourable because of money and muscle power which controls the market,” they alleged.

Activities were limited as is evident from the sharp fall in the turnover. Open interest fell indicating good liquidation. There was no switching over.

June contract on the NCDEX declined by Rs 74 to close at Rs 29,487 a quintal. July and August dropped by Rs 188 and Rs 139, respectively, to close at Rs 29,134 and Rs 29,223 a quintal.

Total turnover fell by 2,650 tonnes to 5,862 tonnes. Total open interest dropped by 564 tonnes to 12,458 tonnes showing good liquidation.

Spot prices remained steady at previous levels on limited activities at Rs 27,300 (ungarbled) and Rs 28,100 (MG 1) a quintal.

Indian parity in the international market was at $6,800 a tonne (c&f) and remained much above other origins which were quoting Asta grade at $6,000 a tonne (fob).

Good quantities are traded at the exchange platform where the material availability is said to be limited, they said, adding that “therefore the goods could be sold on the exchange platform at the current prices”.

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