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India jeera hits contract low again; turmeric up
March 20, 2012 / 8:43 AM / 6 years ago

India jeera hits contract low again; turmeric up

MUMBAI, March 20 (Reuters) - Jeera, or cumin seed, futures in India fell to a new contract low for the second straight session on Tuesday, hurt by large arrivals of the new season crop in the spot market amid expectations of higher output this year, analysts said.

* At 2 p.m, the most-traded jeera for April delivery fell 1.26 percent to 12,522.5 rupees per 100 kg after hitting a contract low of 12,450 rupees.

* In Unjha, a key trading market in Gujarat, jeera dropped 240 rupees to 12,857 rupees per 100 kg.

* Daily supplies in Unjha market have risen to 38,000-40,000 bags of 60 kg each compared to 28,000-30,000 bags a week ago.

* “Supplies are huge. Heavy supplies are likely to continue till the end of this month,” said Samir Mahendra Shah, a trader from Unjha.

* Spot traders expect jeera prices to fall to 12,000 rupees in the short term.

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

TURMERIC

Turmeric futures were up on some short-covering, although higher domestic supplies and expectations of a bumper crop restricted the gains.

* Turmeric auctions have been cancelled at the Nizamabad market in Andhra Pradesh for the week to March 24 due to excess supply of fresh crop.

* 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.

* Turmeric for April contract was trading up 0.19 percent at 4,256 rupees per 100 kg. The contract has fallen nearly 12 percent this month.

* “It is likely to trade steady in the remaining session due to lack of cues from the spot market. Any upside movement is very limited because of higher supplies,” said Chowda Reddy, senior analyst at JRG Wealth Management.

* 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 fell as continued profit-booking after prices rose nearly 8 percent this month outweighed lower supplies and weak stocks.

* Overall supplies have been low in the domestic market since the start of the season because of reduced arrivals from farmers expecting further price increases due to lower estimated output.

* The most-active pepper for April delivery was 2.68 percent lower at 42,955 rupees per 100 kg. It has risen 8 percent this month.

* “Correction is expected to continue till the levels of 42,300 rupees,” said Reddy from JRG Wealth Management.

* 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 dropped 600 rupees to 40,747 rupees per 100 kg. (Reporting by Meenakshi Sharma)

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