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India jeera hits contract low; turmeric up
March 14, 2012 / 10:48 AM / 6 years ago

India jeera hits contract low; turmeric up

MUMBAI, March 14 (Reuters) - Jeera, or cumin seed, futures in India hit a fresh contract low for the fourth straight session on Wednesday due to higher supplies amid expectations of an increase in output this year, although spot market prices rose on some bargain hunting.

* At 4:00 p.m., the most-traded jeera for April delivery fell 0.51 percent to 13,072.5 rupees per 100 kg after hitting a contract low of 12,877.5 rupees.

* “Arrival pressure is seen on jeera futures. Prices may fall further as arrivals are expected to rise in coming days,” said Nalini Rao, analyst at Angel Commodities.

* About 27,000-28,000 bags of 60 kg each from the new crop have been arriving daily in the Unjha spot market in Gujarat, of which 20,000-22,000 gets traded.

* Spot traders expect prices to fall by another 200-300 rupees due to higher supplies.

* In Unjha, jeera gained 205 rupees to 13,463 rupees per 100 kg.

* Jeera is cultivated during winter, from October to December, and harvesting starts from February.

TURMERIC

Turmeric futures gained on short-covering after prices fell 11 percent this month although increasing domestic supplies in the spot market from the new season crop weighed on appetite.

* Daily arrivals have reached about 15,000 bags of 70 kg each at the Nizamabad market in Andhra Pradesh, and are expected to rise further, traders said.

* The turmeric for April contract was trading up 2.02 percent at 4,346 rupees per 100 kg.

* Analysts expect selling to weigh on prices at around 4,400 levels because of expectations of a bumper crop.

* “April contract can test the resistance at 4,370-4,400 rupees per 100 kg,” Kotak Commodities said in a research note on Wednesday.

* At Nizamabad, a key market in Andhra Pradesh, turmeric gained 14 rupees to 4,048 rupees per 100 kg.

* Turmeric output in Andhra Pradesh, India’s top producer of the spice, is likely to rise 36 percent on year to 83,000 tonnes in 2012 due to an expansion in acreage.

PEPPER

Pepper futures rose, tracking a firm spot market where a squeeze in daily supplies due to lower output triggered buying, while dwindling stocks supported.

* Supplies are low in the domestic market as farmers have been holding back stocks anticipating further price increases.

* The most-active pepper for April delivery was 0.34 percent higher at 42,360 rupees per 100 kg.

* “Fundamentals are supportive in pepper. Supplies are insufficient to meet the demand. It may touch 43,500 rupees in short term.” said Rao.

* Industry officials estimate 43,000-45,000 tonnes of domestic pepper output for 2012, compared with 49,000 tonnes last year.

* In the Kochi spot market in Kerala, pepper gained 522 rupees to 40,400 rupees per 100 kg. (Reporting by Meenakshi Sharma; Editing by Aradhana Aravindan)

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