India turmeric down on profit-taking; jeera, pepper up

Aug 9 (Reuters) - Turmeric futures fell on Thursday as traders continued to cash out gains after the recent rise in prices while improved rains and a decline in domestic demand weighed.

* At 0937 GMT, the September turmeric contract on the National Commodity and Derivatives Exchange (NCDEX) fell 2.69 percent to 5,928 rupees per 100 kg. The contract has risen more than 36 percent since July on a decline in the seeded area.

* The exchange has barred traders from taking fresh positions in the August contract from Tuesday until the expiry of the contract.

* "Weather is cloudy and it's raining at some places but nothing can compensate the sharp decline in area. Prices should now consolidate in this range because factors are supportive," said R.K. Vishwanath, a trader from Erode in Tamil Nadu.

* In Nizamabad, a key market in Andhra Pradesh, turmeric fell 53 rupees to 5,502 rupees per 100 kg.

* India's monsoon rains are expected to be deficient in 2012, the weather office said on Aug. 3.

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

* Farmers slashed the area under turmeric sowing this season after prices fell sharply since the last year.

JEERA

Jeera, or cumin seed, futures earsed early losses due to a decline in spot supplies but rains in parts of Gujarat, the country's top producer, which would improve soil moisture, restricted the upside.

* "Weather has improved and rains in Gujarat are likely to increase soil moisture...helpful for the rabi crops," said Faiyaz Hudani, a senior analyst at Kotak Commodities.

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

* The September jeera contract on the NCDEX was up 0.33 percent at 16,112.5 rupees per 100 kg.

* At Unjha, a key market in Gujarat, jeera fell 184.5 rupees to 16,263 rupees per 100 kg.

PEPPER

Pepper futures rose on thin supplies and lower inventory but weak overseas sales kept the upside limited.

* The most-active September contract on the NCDEX rose 0.23 percent to 43,860 rupees per 100 kg.

* "Poor exports are weighing on sentiment but long-term trend is bullish. Prices are unlikely to fall below 42,000 rupees and could touch 50,000 ruppes in long term," said Hudani.

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

* Scanty rains in Kerala and Karnataka states, the leading pepper producers, are seen lowering yields, analysts said.

* In Kochi,a key market in Kerala, spot pepper fell 49.5 rupees to 42,597.5 rupees. (Reporting by Meenakshi Sharma; Editing by Sunil Nair)

Source: