Turmeric futures may trade in narrow range: Geojit

Geojit Comtrade has come out with its report on spices. The research firm says Turmeric futures are likely to trade in a narrow range as subdued demand is expected to limit upside in prices.

Turmeric futures are likely to trade in a narrow range as subdued demand is expected to limit upside in prices. The spot prices were also under pressure due to sluggish demand from domestic and overseas markets coupled with ample carryover stocks. According to market source, fresh crop has started to arrive in major spot markets but buying is yet to pick up due to high moisture content in the new crop. Fresh crop arrivals are likely to gather pace by February end. On Wednesday, turmeric arrivals in Erode and Nizamabad were around 2500 bags (1bag=70kg) and 8200 bags, respectively. The spot price for finger variety in Nizamabad traded at Rs.5300 per 100kg and in Erode, it was quoted as Rs.6100 per 100kg.

Cardamom futures ended down due to extended profit booking and higher arrivals in major spot markets. Reports of adequate stocks in the spot markets too put pressure on prices. However, the demand for cardamom is expected to rise due to strong buying by traders and stockists before arrivals of the new crop drop considerably. However, poor demand from north Indian buyers amid decline in sales due to severe cold conditions over there may too weigh on prices. On Wednesday, total arrivals and offtake of cardamom at the auctions held in Kumily were around 51 tonnes and 49 tonnes, respectively. The spot price on an average was quoted as Rs.747 per kg and the maximum price stood at Rs.1131 per kg.

Chilli futures extended the weak trend as new crop arrivals and ample stocks in cold storages weighed on the sentiment. On Wednesday, arrivals of the new crop in Guntur were near 28000 bags, while supplies from cold storage were at around 25000 bags. However, the price fall is likely to be limited due to strong demand from domestic and overseas buyers. Fears over fall in output may also support prices. Chilli output is seen around 20 percent lower in Andhra Pradesh this year. As per the latest report from Andhra Pradesh agriculture department, chilli sowing during this rabi season was at 44335 hectares as on 31st January 2013 compared with 49760 hectares same period last year.

Coriander prices are seen trading in a narrow range as subdued demand is likely to weigh on prices, while lower output estimates may limit sharp fall in prices. Still, the fresh crop arrivals which are likely to gain pace by the end of February month and continue till April could weigh on price trend. According to market source, the traders started offloading their old stocks due to the commencement of fresh crop arrivals. On Wednesday, total arrivals of coriander in major whole sale markets of Rajasthan were around 7500 bags (1 bag=40 kg). And the spot price for the spice in Kota stood at Rs.5900 per 100kg. Arrivals in Kota, Baran and Ramganj were near 2500 bags, 2000 bags and 3000 bags, respectively.

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