Pepper may trade higher today: Geojit Comtrade

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

Pepper price is expected to trade higher due to strong demand amid tight supply in the market. The spot price stood steady at around Rs.33300 per 100kg in Kochi mandi. On an average, the price of Indian pepper increased by 1 percent to $6467 per tonne compared to previous week. Fresh crops which are expected to reach the market by December may weigh on the price trend. However, the exports are seen firm in domestic and international market. According to latest report from IPC, Brazil exported 4700 tonnes of pepper in October 2011, up 3 percent from September 2011. During January-October 2011, total export of pepper from Brazil was 25331 tonnes against 24185 tonnes last year, up 5 percent. Global Pepper Conference 2011, organized by International Pepper Community in cooperation with the Directorate General of International Trade Cooperation will be held in Indonesia from 22nd - 26th November 2011.

Jeera ended up on short covering after the weak trend witnessed last few days. Jeera arrivals in Unjha madni stood stable at around 3500 bags compared to previous day, where the spot price increased to Rs.14500 per 100kg. Dry weather in major growing areas is expected to support the prices in near term as the sowing is likely to be got affected. According to latest data by the Gujarat Agriculture Department, area under rabi crops in the state fell by nearly 20 percent to 4.25 lakh ha. Late monsoon and delayed harvesting of the kharif crops in the state lead to fall in rabi sowing. Jeera acreage in Gujarat fell to 34300 ha compared to 39000 ha same period a year ago. However, latest data by the Rajasthan Agriculture Department showed that the acreage of major rabi crops in the state rose to 5 million ha as of 15th November 2011 compared to 3.71 million ha same period last year.

Turmeric futures closed up on short covering due to reports on good demand from North India. Export data by the Spices Board also supported the uptrend. According to Spices Board data, the export is estimated to touch 50000 tonnes in 2011-12, up 83 percent from previous year. However, expected rise in daily arrivals amid gain in the prices made last few days are likely to pressurize the prices. Higher stocks with the farmers may also increase the daily arrivals. Turmeric arrivals in Erode market were around 13000 bags, up by 3000 from previous day, while in Nizamabad arrivals were unchanged at 1200 bags. The finger variety was quoted at Rs.4500 and Rs.5600 per 100 kg in Erode and Nizamabad respectively.

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