The pepper market on Tuesday was double floored in correction after moving up sharply to much higher levels in recent days. All the active contracts decreased to much below the previous day’s closing.
“It is a very necessary correction as the market has been pushed up to such levels that nobody was able to cover at those rates. In fact, it has got a feel of the reality,” market sources told Business Line .
There were deposits at the exchange. Some were unwinding their positions and switching over to Oct. Good liquidation was also there in August.
On the spot, about 45 tonnes of farm grade pepper arrived and of this some 25 tonnes were traded at Rs 400, 403 and 410 depending upon the quality, grade and area of production, they said.
August contract on the NCDEX decreased by Rs 1,785 a quintal to the last traded price (LTP) of Rs 42,895 a quintal. September and October were down by Rs 1,775 and 1,780 respectively to the LTP of Rs 42,715 and Rs 42,955 a quintal.
Turnover
Total turnover increased by 468 tonnes to 8,801 tonnes. Total open interest dropped by 295 tonnes to 8,075 tonnes.
August open interest fell by 559 tonnes to 4,714 tonnes while September declined by 9 tonnes to 2,795 tonnes. October increased by 262 tonnes to 545 tonnes.
Spot prices fell in tandem with the futures market trend by Rs 1,000 to close at Rs 40,300 (ungarbled) and Rs 41,800(garbled) a quintal. The spot pepper dropped by Rs10 a kg while August delivery fell by around Rs 18 a kg.
Indian parity in the international market fell to $7,850 a tonne (c&f) Europe and $8,150 a tonne (c&f) for the US and still remained out priced.