Geojit Comtrade`s view on Pepper, Jeera, Turmeric

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

Pepper futures gained lead by short covering amid strong spot demand against the restricted arrivals. As per Indian Pepper and Spice Trade Association the spot price of garbled and ungarbled pepper traded at Rs.34800 and Rs.33300 per 100kg respectively. As per trade source, Indian pepper was offered at around $7350 per tonne in the international market. Kuching grade black pepper in Malaysian market was priced at RM15500 per tonne. The domestic demand for the spice is expected to rise from north India ahead of winter season and Christmas season. As per market source, the activities in the spot markets were limited on drop down in arrivals due to the ongoing agitation of the Mullaperiyar dam in the Idukki district. Fresh crops are expected to hit the market by December end. According to data from International Pepper Community, India's pepper output in 2012 is likely to be 43000 tonnes, down from 48000 tonnes 2011. However, higher production estimates in Vietnam may restrict the upside in pepper price.

Jeera futures closed higher on good demand due to uncertainty over the output due to warm weather in major growing regions. Jeera arrivals in Unjha market were steady compared to last day at 2500 bags. The spot price stood unchanged at Rs.14400 per 100 kg. Warm weather witnessed in major jeera growing areas increase uncertainty over sowing and the output estimates. According to latest data from Gujarat Agriculture Department rabi acreage in the state fell over 5 percent as of Monday to 1.77 mln ha from 1.86 mln ha a year ago. However, area under jeera rose near 20 percent on year to 1.93 lakh ha. Meanwhile, as per media report around 20 percent of jeera seeds sown this year got damaged due to warm weather. According to IMD report dry weather would prevail over major jeera growing areas, particularly in Gujarat and in other northern states.

Turmeric contracts traded higher on firm spot market trend. Good buying interest in the physical market supported the uptrend. Spot prices are trading higher than the futures price and so the near month December contract is likely to gain parity with the spot price. The price of turmeric in the Nizamabad market is around Rs.5300 per 100kg, while the December contract on the NCDEX is at Rs.4590. Stocks in the exchange accredited warehouses increased compared to last day. As of 7th December 2011, turmeric stocks at NCDEX accredited warehouses were 4206 tonnes, up from 4196 tonnes on previous day and down from 5129 tonnes a month ago, the exchange data showed. However, the long term trend is on bearish side as production is expected to be higher this year and the market may be flooded with fresh crops.

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