Thursday, August 30, 2012

India jeera up on thin supply; pepper drops

spicemarketnews_pepper_029Aug 30 (Reuters) - Jeera, or cumin seed, futures rose on Thursday as thin supplies in the spot market and fresh overseas enquiries supported buying though rains in top producer Gujarat state limited the upside.

* At 0932 GMT, the September jeera contract on the National Commodity and Derivatives Exchange (NCDEX) was up 1.18 percent at 14,780 rupees per 100 kg.

* "Some fresh overseas enquiries came today, though overall demand has come down slightly on hopes of a correction in prices. Upside would be limited because of continues rains in Gujarat," said Samir Mahendra Shah, a trader from Unjha, a key market in Gujarat.

* Gujarat has been receiving good rains since past few days and this would help sowing in the crop season.

* The rains will improve soil moisture which is required for sowing rabi crops.

* Jeera is a winter crop sown from October and farmers depend on the rains to moisten the land for sowing.

* At Unjha, a key market in Gujarat, jeera fell 11 rupees to 15,551 rupees per 100 kg.

PEPPER

Pepper futures were lower in afternoon trade on weak demand for Indian-origin produce in the global market due to higher prices. However, the downside was restricted by thin supplies and lower stocks.

* The most-active September contract on the NCDEX was down 0.35 percent at 41,365 rupees per 100 kg.

* "It is expected to trade within range this week because of thin trading across spot. Exports are almost negligible because of higher prices," said Manikant Khona, a trader from Kochi, a key market in Kerala.

* Exports have been poor because Indian-origin pepper is offered at a premium of $800-$1,200 per tonne in the global market compared to competitors.

* In Kochi, spot pepper fell 305 rupees to 40,783 rupees per 100 kg.

* Overseas buyers have been placing orders with pepper producers such as Indonesia and Brazil due to lower prices in those countries, traders said.

* In April, pepper exports fell 47 percent from a year earlier to 1,200 tonnes.

TURMERIC

Turmeric futures edged up due to lower area under cultivation, but profit-taking at higher levels driven by a decline in spot demand weighed on sentiment.

* The September turmeric contract on the NCDEX rose 0.40 percent to 6,044 rupees per 100 kg.

* "Production is expected to fall next year because of reduced area under cultivation. Fundamentals are supportive and expected to keep prices firm," said Suresh Chowdhary, a trader from Nizamabad, a key market in Andhra Pradesh.

* Rain in Tamil Nadu has been 23 percent lower than average in the season till Aug. 22, weather office data showed.

* At Nizamabad, spot turmeric inched down 7.5 rupees to 5,602.5 rupees per 100 kg.

* Turmeric is planted between June and August and takes about nine months to harvest.

* Farmers slashed the area under turmeric cultivation this season following a sharp decline in prices that started last year. (Reporting by Meenakshi Sharma; Editing by Prateek Chatterjee)

Reuters

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