Geojit Comtrade`s view on Pepper, Jeera, Turmeric

Geojit Comtrade has come out with its report on Pepper, Jeera and Turmeric

Pepper futures ended up on reports from International Pepper Community on lower pepper output in major producing countries. In Kochi mandi price traded near Rs.34000 per 100kg. As per report from IPC, pepper production in India and Vietnam may fall in coming season. Added Indonesian pepper export is likely to fall as production has declined drastically this year. Indonesian export was 29000 tonnes in October 2011, down 40 percent from same period previous year. The production is expected to decline to 30000 tonnes at the end of the year compared to 59000 tonnes last year. According to earlier estimates made by IPC, Indian production during 2010-11 is pegged around 48000 tonnes against 50000 tonnes during 2009-10. Indian consumption during 2011 is estimated around 40000 tonnes, down 10 percent due to higher prices and carryover stock at the beginning of year at 14500 tonnes.

Jeera futures traded up on short covering after the weak trend in the last few sessions. The futures price is trading at a premium compared to the spot price and is likely to support the uptrend. The overall trend for the spice seems bearish as the production is estimated to be higher on good sowing, reported this season. The arrivals stood on higher side in major spot markets. In Unjha market the arrivals was reported near 3000 bags. The spot price traded at around Rs.14500 per 100 kg. Latest data by the Rajasthan Agriculture Department showed that the acreage of major rabi crops in the state rose to 5 million ha last week compared to 3.71 million ha same period a year ago. However, reports of dry weather in major jeera growing regions may weigh on the trend. As per IMD report, weather would be mainly dry in the country except the southern states.

Turmeric futures ended down on higher stocks amid good production prospects. Higher arrivals witnessed during the last few weeks is pulling the prices down despite of good north Indian demand. However, the stocks in NCDEX accredited warehouses as of 23rd November 2011 declined to 4819 tonnes from 4849 last week. As of Thursday total arrivals of turmeric in Erode and Nizamabad were around 9500 bags, down from 10500 bags last day. The price of finger variety stood steady in Erode and Nizamabad mandi at Rs.4200 and Rs.5600 per 100 kg respectively. As per market source, the farmers are holding their stocks expecting a higher price on report of likely rise in export demand. Spices Board of India projected the export of turmeric to touch 50000 tonnes in the year 2011-12.

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