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Pepper market slipped on fear psychosis despite an increase in the open interest and turnover on Monday. Consequently, the first two active contracts declined marginally while the third one moved up slightly.
However, “long position holding cartel” is trying its level best to keep the market up and firm. It is spreading rumours that those having short position in November, but do not have goods against that may come out for covering back and thus, a fear psychosis is being created in the market. This in turn has pushed the market down, market sources told Business Line .
In fact, of late, more and more pepper is coming out from the primary markets, they said.
On Saturday, an estimated 110 tonnes of pepper was reportedly deposited in recognised warehouses. Even some of them are reportedly full, which the trade alleged, is a tactic aimed at discouraging sellers from transporting to distant places incurring additional transportation charges.
On the spot, 59 tonnes of farm grade pepper arrived today and 60 tonnes were sold at Rs 406 and 408 a kg for 500 GL; Rs 410 - 412 a kg for 550 GL and high range pepper at Rs 415 and 417 a kg while pepper from Rajakumari in Idukki was quoted at Rs 419 a kg but there were neither any seller nor any buyer, they said.
November contract on the NCDEX decreased by Rs 205 a quintal to the last traded price (LTP) of Rs 43,815 a quintal while December was down by Rs 35 a quintal to the LTP of Rs 43,350. February was up by Rs 90 a quintal to the LTP of Rs 38,950 a quintal.
Turnover
Total turnover increased by 263 tonnes to 923 tonnes. Total open interest also went up by 132 tonnes to 8,899 tonnes.
November open interest moved up by 59 tonnes to 5,660 tonnes while that of December and February increased by 70 tonnes and two tonnes to close at 2,589 tonnes and 569 tonnes.
Spot prices declined by Rs100 in tandem with the futures market trend and increased arrivals to close at Rs 40,600 (ungarbled) and Rs 42,100 (garbled) a quintal.
Indian parity in the international market was at $8,400 a tonne (c&f) for the Europe and $8,700 a tonne (c&f) for the US. Weakening of the rupee has also contributed to the slight decline in the prices.
Indonesia is the cheapest at present being offered at nearly $2,000 a tonne below the Indian parity. In fact, multinational companies with multi-origin operations having processing facilities in Vietnam are reportedly importing pepper from Indonesia for meeting their export commitments of LBV pepper, they said.
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