Turmeric may trade on positive note today:Karvy Commodities

Karvy Commodities Broking has come out with its report on spices. According to the research firm, Turmeric prices are expected to trade on positive note on back of declining arrival across the spot markets.

Pepper prices are projected to trade on a positive note on back of supporting fundamentals of supply crunch in domestic market. According to reports, monsoon is expected to hit north Indian in a week which might result in pickup in demand for pepper pushing prices on higher side. Indian parity in the international market was at $7300 per MT (c&f) Europe and $7600 per MT (c&f) US; much higher than other origins. According to trade sources, growers are holding back their crop as they are not ready to sell their produce at prevailing prices.

Turmeric prices are expected to trade on positive note on back of declining arrival across the spot markets. Prices are spot market of Erode are now making a high of Rs. 4000/ quintal on daily basis. Good quality arrivals are keeping prices firm. However, no fresh reports have come regarding procurement from TANFED which might limit huge gains in turmeric prices. Arrivals at spot market of Erode were reported around 9,200 bags (1bag=70Kg.), on Tuesday of this 70% get sold. According to Trade sources, turmeric arrival are expected to fall further in coming days as most of the farmers will start sowing activity for next season.

Jeera prices are projected to trade on slightly positive note on cues from declining arrival at spot market of Unjha. Reports of emergence of demand from local bulk buyers are likely to support prices to move up. However, exporters’ buying is remaining limited which might limit huge upside movement in prices. Arrivals at spot market of Unjha were reported steady at 10,000 bags (1 bag= 60Kg.) on Tuesday. India is expected to export 60,000-65,000 tons of jeera during 2012-13 (Apr- Mar) up by 43,000 tons exported during 2011-12.

Chilli prices are projected to extend the gains on fresh buying supported by rising demand from local bulk buyers. Reports of export orders from neighbouring countries might support the prices to move up in near term. Spot market of Guntur witnessed arrivals of 35,000 bags (1bag=40Kg.) on Tuesday against 25,000 bags. Reports of some export orders from Bangladesh and China might support chilli prices in near term.

Cardamom prices are projected to trade on slightly lower note during today’s trading session. Monsoon rains and good carry forward stocks are likely to keep prices under pressure. However, demand from exporters ahead of Ramadan might cushion prices later in the day. Total daily arrivals at spot auction held in Kerala were around 43,984 Kgs. on Tuesday. Monsoon rains have revived with good pace in most parts of South India which is supporting growth of cardamom crop.

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