India turmeric falls on stocks; jeera rises
MUMBAI Dec 7 (Reuters) - Indian turmeric futures fell due to weak overseas demand amid higher stocks while the approaching supply season also weighed on prices.
* At 0939 GMT, the April turmeric contract on the National Commodity and Derivatives Exchange (NCDEX) was down 1.01 percent at 5,688 rupees per 100 kg.
* "Prices are not sustaining at higher levels because stocks are very high and the new supplies are also just one to two months away," said Suresh Chowdhary, a trader from Nizamabad, a key market in Andhra Pradesh state.
* At Nizamabad, spot turmeric rose 61 rupees to 5,032.5 rupees on demand from north India.
* The area under turmeric cultivation is lower this year due to scant rainfall during the planting season and the shift of acreage to other crops, but higher carry-forward stocks are expected to keep supplies firm.
Indian pepper futures fell on estimates of higher output, the approaching new supply season and sluggish overseas sales as higher prices of Indian origin pepper dampened demand.
* The most-active February pepper contract on the NCDEX fell 0.58 percent to 33,370 rupees per 100 kg.
* Pepper production is likely to rise in the states of Karnataka and Kerala, the two top producers.
* "Pepper is expected to trade weak as fresh supplies are expected from January-February," said Chowda Reddy, a senior analyst at JRG Wealth Management.
* Analysts expect the February contract to extend its fall to 32,500-32,000 rupees in the near term.
* Spot pepper edged up 6 rupees to 38,853 rupees per 100 kg in Kochi, a key market in Kerala, due to thin domestic supplies.
Indian jeera futures rose on the slow pace of sowing in Gujarat, the top producer of the spice, though subdued local purchases and weak overseas demand restricted the gains.
* Jeera is a winter crop for which sowing in Gujarat, the top producer, will continue through December.
* The March jeera contract on the NCDEX was up 0.68 percent at 15,130 rupees per 100 kg.
* "Sowing operations are lagging behind in parts of Gujarat due to lower monsoon rains in the state," said Jay Kumar Jain, a trader from Unjha, a key spot market in Gujarat.
* Spot jeera fell 39 rupees to 14,870 rupees per 100 kg at Unjha.
* India is the world's top producer of jeera, or cumin seed, followed by Syria and Turkey. (Reporting by Meenakshi Sharma; Editing by Anupama Dwivedi)
- Tweet this
- Share this
- Digg this
Trending On Reuters
The Reserve Bank and the finance ministry have agreed, in the biggest change to monetary policy since opening up India's economy more than two decades ago, to introduce inflation targetting to rein in a long history of volatile price rises. Full Article | Factbox