Jeera may trade lower on extended long liquidation: Karvy

Karvy Commodities Broking has come out with its report on spices. According to the research firm, Jeera prices are projected to trade on lower note on back of extended long liquidation.

Pepper prices are expected to trade on lower note on extended profit booking. Poor export demand due to higher Indian quotations might weigh on prices during the day. Reports of fresh arrivals to pick from Indonesia and Malaysia in coming week are likely to have negative impact on Indian pepper prices. However, domestic supply crunch might limit huge losses in pepper prices. Indian parity in the international market was at $7,850 - $7,900 a tonne (c&f) for Europe and $8,150 - $8,200 a tonne (c&f) for the US while Vietnam 550 g/l was at $6,325-6350; Brazil B1 $6350 per MT and Lampong ASTA: $6,500 per MT.

Turmeric prices are expected to continue the corrections long liquidation during early trading session. However, currently stockiest buying is supporting spot prices to move higher and Turmeric prices at spot market have touched Rs.6000 per quintal. Market sources, are expecting these level will not remain for long as farmers will increase supplies to the market in lieu of higher prices. Until now on exporter has received no fresh orders from or Indian states which might weigh on sentiments.

Jeera prices are projected to trade on lower note on back of extended long liquidation. Higher arrivals at spot market of Unjha are likely to keep prices under pressure. However, these jerks are likely to create fresh buying opportunity in market backed by poor stocks and stockiest demand. According to trade sources, Indian will be the sole supplier in the world as Syria and Turkey’s production is down by 40-50% and their export offering are also higher than Indian quotes.

Chilli prices are projected to continue the corrections on long liquidation during early trading session. However, good demand from local stockiest and Bangladesh might support chilli prices to recover from earlier losses. Slow sowing report in major growing regions of Andhra Pradesh might also cushion the prices.

Cardamom prices are projected to trade on volatile note with biased towards down side during opening hours. Reports of spot auction to run throughout the year due to ample stocks are creating pressure on prices. However, later on prices might recover as unfavourable weather conditions are creating crop concerns. The new crop for 2012-13 season will not reach the market before September 15th as delayed rainfall has damaged more than 50 percent of the crop, leading to delayed flowering.

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