Monday, August 27, 2012

India turmeric gains on lower sowing; jeera drops after Gujarat rains

spicemarketnews_turmeric_029Aug 27 (Reuters) - Turmeric futures rose more than 1 percent on Monday due to a decline in area under cultivation and on some fresh export enquiries.

* "Overseas enquiries are improving and continue to stay firm in coming days. Exporters are finding present levels attractive," said Suresh Chowdhary, a trader from Nizamabad, a key market in Andhra Pradesh.

* At 0935 GMT, the September turmeric contract on the National Commodity and Derivatives Exchange (NCDEX) was up 1.32 percent at 5,974 rupees per 100 kg.

* At Nizamabad, spot turmeric rose 33 rupees to 5,450 rupees per 100 kg.

* Farmers slashed the area under turmeric cultivation this season following a sharp fall in prices that started last year.

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

PEPPER

Pepper futures rose as thin supplies from farmers in the spot market and dwindling stocks supported buying, though weak overseas sales kept the upside limited.

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

* The most-active September contract on the NCDEX was up 0.55 percent at 41,850 rupees per 100 kg.

* "Some buying at lower levels is seen in pepper futures because of slack supplies but trend is sideways to weak for medium term because of negligible exports," said Chowda Reddy, senior analyst at JRG Wealth Management.

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

* In Kochi, spot pepper fell 68.5 rupees to 40,994 rupees.

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

JEERA

Jeera, or cumin seed, futures fell as rains in top producer state, Gujarat, raised hopes of better sowing in the season while a decline in spot demand also weighed.

* Gujarat has been receiving good rains and is expected to continue for the next 2-3 days, the weather office said in a statement on its website.

* The September jeera contract on the NCDEX was down 0.98 percent at 14,920 rupees per 100 kg.

* "Jeera prices are expected to correct further today. Good rains in Gujarat may pressurize the prices. However, revival of export demand at lower levels may support prices at lower levels," Angel Commodities said in a research note on Monday.

* The rains would improve the soil moisture required for sowing rabi crops.

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

* At Unjha, a key market in Gujarat, jeera fell 218 rupees to 15,796 rupees per 100 kg. (Reporting by Meenakshi Sharma; Editing by Anupama Dwivedi)

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