January 10, 2013 / 9:44 AM / 5 years ago

Indian jeera hits a contract low; pepper up

MUMBAI, Jan 10 (Reuters) - Indian jeera futures hit a contract low for a second consecutive day on Thursday, weighed by weak demand in spot markets, higher area under cultivation and favourable weather conditions.

* Jeera is a winter crop for which sowing starts from October and extends until December.

* As of 0934 GMT, the March jeera contract on the National Commodity and Derivatives Exchange (NCDEX) was down 1.61 percent at 13,890 rupees per 100 kg after hitting a contract low of 13,865 rupees earlier in the session.

* "Demand is weak from local buyers and exports are also very marginal," said Samir Mahendra Shah, a trader from Unjha, a key market in Gujarat.

* India is the world's top producer of jeera, or cumin seed, followed by Syria and Turkey.

* At Unjha, jeera fell 93 rupees to 14,434 rupees per 100 kg.

TURMERIC

Indian turmeric futures were lower as traders chose to sell their produce due to mounting stocks and sluggish exports.

* The April turmeric contract on the NCDEX was 0.39 percent down at 6,612 rupees per 100 kg.

* "Demand from overseas buyers is not as good as was expected because buyers are awaiting further fall in prices," said Suresh Chowdhary, a trader from Nizamabad, a key market in Andhra Pradesh.

* At Nizamabad, spot turmeric fell 43 rupees to 5,643 rupees per 100 kg.

* The area under turmeric cultivation is lower this year due to scant rainfall during the planting season and a shift in acreage to other crops, but higher carry-forward stocks are expected to keep supplies firm.

PEPPER

Indian pepper futures rose on firm cues from spot markets where winter demand was good, though an estimated rise in output and weak exports kept the upside limited.

* Supplies from the new season crop start from January-February.

* "Prices should have gained more because this is the demand season, but because of weak exports the rise is limited," said Manikant Khona, a trader from Kochi, a key market in Kerala.

* The most-active February pepper contract on the NCDEX was up 0.50 percent at 35,280 rupees per 100 kg.

* Pepper output is likely to be higher this season due to expectations of good yields in the top producing states of Kerala and Karnataka, traders said.

* Spot pepper rose 104.5 rupees to 38,373.5 rupees per 100 kg in Kochi. (Reporting by Meenakshi Sharma; Editing by Subhranshu Sahu)

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