Turmeric may fall in short term on fresh crop arrivals
Geojit Comtrade has come out with its report on spices. According to the research firm, Turmeric prices came under pressure due to sluggish demand from bulk buyers. Despite a lower crop projection estimates, the commodity is expected to move lower in the short term on the back of fresh crop arrivals.
March 25, 2013 / 14:06 IST
Geojit Comtrade has come out with its report on spices. According to the research firm, Turmeric prices came under pressure due to sluggish demand from bulk buyers. Despite a lower crop projection estimates, the commodity is expected to move lower in the short term on the back of fresh crop arrivals.
Pepper futures traded lower on reports of higher arrivals in major spot markets. Harvesting progress in Vietnam, the world’s largest pepper producer and exporter, too weighed on the price trend. On Saturday, arrivals in Kochi were around 21 tonnes and the spot price for garbled pepper traded at Rs.36300 per 100kg. As per the latest report from IPC, during nineties Singapore was predominant in pepper trading with a substantial volume of trade of around 44000 tonnes of import. But, during the last eight years (2005 – 2012) pepper trade in Singapore fluctuated at narrow range and on an average the trade volume remained at the level of 12000 tonnes of import. The decrease was mainly due to importers in consuming countries sources pepper directly from producing countries.Jeera futures ended in the red due to weak demand from bulk buyers and higher production estimates. The arrivals in Unjha were around 30000 bags (1bag=55kg) and the spot price for exchangedeliverable quality jeera traded at Rs.13000 per 100kg. According to market source, fresh crop arrivals have picked up over the last one week. The price is likely to trade in a narrow range in the coming days as higher new crop arrivals may pressurize prices, but expected improvement in domestic and overseas enquiries may limit sharp fall in prices. As the prices have been dropping for the last few days, fresh domestic and export demand is likely to emerge in the market. The daily arrivals are likely to gain pace further after Holi in the major markets of Rajasthan and Gujarat.Turmeric prices came under pressure due to sluggish demand from bulk buyers. Despite a lower crop projection estimates, the commodity is expected to move lower in the short term on the back of fresh crop arrivals. The imposition of special margin of 10 percent by NCDEX on the long side for all contracts may weigh on the futures price trend too. However, dearth of selling by cultivators and strong off take by investors due to lower production forecast may propel strong gains in turmeric prices. Turmeric arrivals in Erode and Nizamabad were around 7000 bags (1bag=70kg) and 11000 bags, correspondingly. The spot price for the spice in both market traded at Rs.6300-7700 per 100kg. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.To read the full report click on the attachment 
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