The involvement of large speculators with huge funds in the commodity market and the fierce competition that led to high volatility seemed to eventually cause many investors to lose confidence in the market.
What is happening to the futures criteria in the National Commodity Trading Market has been defied against the principles of forward trading, the sources said. Business Line. According to the above information, there should be no delivery at the time of maturity of each contract and at the same time the futures and spot prices must also be at a certain level.
“This does not happen on the exchange and the current price is artificial or pushed up or pulled down and that is why the delivery is being chosen,” the sources said.
Pointing out the unclear trading activities, some traders requested to reopen the commodity exchanges of each region and pepper was only traded on those exchanges. They argue that the major speculators, after creating problems with the gum guar, chilli, turmeric, and cumin seeds, have now reached the pepper market.
The major speculators, who reportedly have stored around 7,800 tons of pepper, are accused of trying different tactics to avoid the losses they are likely to suffer after the price drops. strong in recent weeks.
In fact, they made the wrong decision when speculating on such large quantities of pepper, market sources said.
Making things worse for them, many investors took delivery before June, that is, before the group took part in and started speculation and tightening operations, returning the goods. chemistry from June onwards. The bulls came back on Friday and propagated about 7,800 tons of pepper being hoarded by speculators to be released soon. Pepper will expire on January 5.
Meanwhile, Kerala farmers and agents have liquidated their goods when prices are above Rs 400 a kg.
New pepper has begun to be delivered, although only in small quantities. Dealers from Tamil Nadu have procured goods directly from major markets and farmers. In addition, returning pilgrims Sabarimala also bought a lot of pepper when passing through the main pepper growing districts of Kerala state such as Idukki, Pathanamthitta, and Kollam. Therefore, it is estimated that about 5-7 tons of pepper are shipped daily. Some domestic demand was also met by supplies from Erode in Tamil Nadu.
If the deadline for the quantity of pepper expires on January 5, reprocessing may result in a tightening of the actual volume before the arrival of the new crop.
The futures market is still fluctuating and prices at the end of the week have shown a small increase for active contracts.
Contracts for February, March and April increased by Rs 380, Rs 85 and Rs 50 respectively, closing at Rs 34,970 a quintal, Rs 34,510 a quintal and Rs 34,570 a quintal (equivalent to US $ 6,350 per tonne, 6,267). USD / ton and USD 6,277 / ton). (1 USD = Rs 55,0700)
Total turnover increased by 3,699 tons to 11,703 tons. Total open interest dropped by 1,173 tonnes.
Spot spot prices at the end of the week decreased by Rs 400 and closed at Rs 36,800 a quintal (US $ 6,682 / ton) for all kinds of pepper and Rs 38,300 / quintal (US $ 6,955 / ton) for the selected type although The domestic demand is very good in the context of tight supply.
Source Business Line / Giacaphe.vn
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