India turmeric drops on profit-taking, weak demand
MUMBAI, Dec 1 (Reuters) - Indian turmeric futures fell sharply on Monday on profit-taking driven by sluggish demand and on an expected rise in arrivals from the new crop, analysts said.
Profit-booking was seen as the December contract is heading for expiry and the next contract is for April, when arrivals peak, said Karvy Comtrade Ltd analyst Amand Rajalaxmi.
The benchmark December contract NTMZ8 on NCDEX had risen more than 13 percent in November.
However, lower warehouse stocks due to a drop in output last year capped losses, said an analyst at a Mumbai-based commodity brokerage.
Traders estimate reduced acreage and unseasonal rains in March to cut output in the year ending March 2007/08 to 4.1 million bags of 70 kg each from 5.4 million bags a year ago.
The price eased by 7 rupees to 3,862 rupees per 100 kg in Nizamabad, a spot market in the southern state of Andhra Pradesh.
Demand has gone down from domestic buyers, Rajalaxmi said.
Following are the closing prices of turmeric futures in rupees per 100 kg on the NCDEX <0#NTM:>:
Contract Reuters code Closing price Change in % Continued...
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