Turmeric futures hit a new contract high on Monday afternoon on lower rainfall in major producing regions, which delayed cultivation and spurred fears of lower acreage in the current season, analysts said.
Andhra Pradesh, Maharashtra, Karnataka and Tamil Nadu, main turmeric producing states, received lower rainfall compared to long term average from June 1 to July 9, the weather department data showed.
At 1:18 pm IST, the August contract on the National Commodity and Derivatives Exchange (NCDEX) was up 0.81 per cent at 4,623 rupees per 100 kg.
The contract earlier hit a new high of Rs 4,632. In Nizamabad, a key spot market in southern state of Andhra Pradesh, the price was up 44 rupees at Rs 4,316 per 100 kg.
JEERA: Indian jeera futures, weak in early trade on profit-taking, erased losses and hit new highs on strong export demand and weak arrivals, analysts said.
The benchmark September contract hit a new contract high of Rs 13,288. Weak arrivals in the physical market also boosted the sentiment, they said.
India, the world's largest jeera producer and exporter, exported about 6,500 tonnes in April-May, compared with 2,180 tonnes a year ago.
At 1:18 pm IST, September contract was trading at Rs 13,247 per 100 kg, up 0.33 per cent.
Spot jeera was trading steady at Rs 12,137 per 100 kg in Unjha, a major trading hub in Gujarat.
CHILLI: Chilli futures extended gains on robust export demand amid scarcity of quality produce in the spot market, analysts said.
Unseasonal rains have affected the quality of Indian chilli and stocks of medium and best quality produce in cold storages in Guntur have fallen 34.8 per cent at end of first week of July, a trade official said last week.
At 1:02 pm IST, August contract was up 0.40 per cent at Rs 5,580 per 100 kg.
In Guntur, a key spot market in southern state of Andhra Pradesh, the price was up Rs 31 at Rs 4,993 per 100 kg.
PEPPER: Indian pepper futures were trading lower in afternoon trade on sluggish export demand due to fresh arrivals in Indonesia and Brazil, analysts said.
Arrivals in Indonesia and Brazil, two of the largest producers and exporters, started in July.
However, low rainfall in major growing regions and weak arrivals capped the losses, they said.
Kerala, which contributes about 90 per cent of the total production, has received 39 per cent lower rainfall during June 1-July 9, compared with its long-term average, according to the weather department.
The plant needs rain at regular intervals for better flowering, which normally happens during June and July.
At 1:13 pm IST, the benchmark August contract was at Rs 14,373 per 100 kg, down 0.23 per cent.
Source: Economic Times
Monday, July 14, 2008
Wednesday, July 9, 2008
Rainfall Fears For Indian Turmeric Crop
Deficient rainfall in the main Indian turmeric growing states has delayed cultivation and farmers fear that acreage may fall this year if weak monsoon persists, traders and analysts said.
Andhra Pradesh, Tamil Nadu and Karnataka in southern India and Maharashtra in the west are main producers of turmeric where lower rains have delayed sowing by a fortnight, Naresh Shah, a trader based in Sangli in Maharashtra, said.
"Everybody is waiting for rains. If they remain weak for the next fortnight, then acreage under turmeric will certainly go down," he said.
Turmeric cultivation starts in June, when monsoon reaches the southern and western states of India.
Lower rainfall may force farmers to opt for corn and soybean crops, which require less water than turmeric and are also giving good returns, said Punam Chand Gupta, a large trader and exporter based in Nizamabad, Andhra Pradesh.
"Already we have seen some diversion in Andhra Pradesh," Gupta said.
The arrival of monsoon three days ahead of schedule in turmeric producing states had led traders to expect higher acreage, helping farmers get higher prices.
The price of turmeric in the Nizamabad spot market was around 4,100 rupees per 100 kg this year, almost double the 2,100 rupees that prevailed in June 2007, according to data compiled by National Commodity and Derivatives Exchange (NCDEX).
Acreage in Tamil Nadu, where rains were higher than other turmeric growing states may rise, but Maharashtra, Karnataka and Andhra Pradesh are likely to see a decline, said Nandkishore Sarda, a trader based in Sangli.
In June 1 to July 2 period, central parts of Maharashtra, northern Karnataka and coastal Andhra Pradesh received lower rainfall compared to long term average, while Tamil Nadu rains were higher, the India Meteorological Department data showed.
Turmeric is a delicate crop and needs to be cultivated and harvested with care to avoid damage to the rhizomes. After the harvest, these are boiled and dried before reaching the markets, making it labour intensive.
Source: Reuters
Andhra Pradesh, Tamil Nadu and Karnataka in southern India and Maharashtra in the west are main producers of turmeric where lower rains have delayed sowing by a fortnight, Naresh Shah, a trader based in Sangli in Maharashtra, said.
"Everybody is waiting for rains. If they remain weak for the next fortnight, then acreage under turmeric will certainly go down," he said.
Turmeric cultivation starts in June, when monsoon reaches the southern and western states of India.
Lower rainfall may force farmers to opt for corn and soybean crops, which require less water than turmeric and are also giving good returns, said Punam Chand Gupta, a large trader and exporter based in Nizamabad, Andhra Pradesh.
"Already we have seen some diversion in Andhra Pradesh," Gupta said.
The arrival of monsoon three days ahead of schedule in turmeric producing states had led traders to expect higher acreage, helping farmers get higher prices.
The price of turmeric in the Nizamabad spot market was around 4,100 rupees per 100 kg this year, almost double the 2,100 rupees that prevailed in June 2007, according to data compiled by National Commodity and Derivatives Exchange (NCDEX).
Acreage in Tamil Nadu, where rains were higher than other turmeric growing states may rise, but Maharashtra, Karnataka and Andhra Pradesh are likely to see a decline, said Nandkishore Sarda, a trader based in Sangli.
In June 1 to July 2 period, central parts of Maharashtra, northern Karnataka and coastal Andhra Pradesh received lower rainfall compared to long term average, while Tamil Nadu rains were higher, the India Meteorological Department data showed.
Turmeric is a delicate crop and needs to be cultivated and harvested with care to avoid damage to the rhizomes. After the harvest, these are boiled and dried before reaching the markets, making it labour intensive.
Source: Reuters
Tuesday, July 8, 2008
Vietnam Pepper Exports To Fall
Exports of pepper from Vietnam, the world’s biggest producer, may fall by almost 10 percent this year as farmers hold back stock because the central bank’s interest-rate increases are raising their costs.Shipments may decline to 75,000 metric tons, from 83,000 tons in 2007, according to Do Ha Nam, chairman of the Vietnam Pepper Association.
The estimate is based on a drop in the volume of exports in the first five months of the year, he said.“Farmers don’t want to sell pepper now because they see increasing farming costs, so they want to wait for a higher price,” Nam said in an interview in Ho Chi Minh City recently.“Vietnamese pepper exporters are having difficulties buying from farmers.”
Exporters’ production costs have increased after the State Bank of Vietnam raised interest rates three times this year to slow the fastest inflation since at least 1992.
Producers may hold back stock to wait for higher prices next year, Nam said.The International Pepper Community, an association of producing countries based in Jakarta, forecasts a shortage of 54,000 tons of the spice globally this year, according to Nam.
Vietnam’s pepper association reduced forecasts for exports this year from 80,000 tons as banks increased lending rates to as much as 21 percent.The central bank raised interest rates to 14 percent from 12 percent on June 11.
“Without increasing the buying price, traders don’t have much money because banks are charging a high interest rate for loans,” Nam said.Farmers can stock pepper for about three years without damaging the quality of the spice, he said.Vietnam’s average export price in the first five months of this year was US$3,500 a ton, compared with $3,300 a ton in 2007, according to the HCMC-based Vietnam Pepper Association, which represents 27 Vietnamese exporters.
“This will definitely boost exports from India as it is the second-biggest producer and push up local prices,” Harish Galipelli, head of research at Karvy Comtrade Ltd., said by phone from the southern Indian city of Hyderabad.Vietnam shipped 35,000 tons of pepper with a turnover of $124 million in the first five months of the year, compared with 39,000 tons of exports worth $107 million in the same period last year.
Vietnam earned $271 million from 83,000 tons export last year.The country’s largest pepper-growing areas are the southern provinces of Binh Phuoc, Dong Nai and Ba Ria-Vung Tau.The country’s exports started with 10,000 tons in 1996, peaking at 116,000 tons a decade later.The country produced 85,000 tons of the spice last year.The next biggest growers were India and Brazil, which produced 50,000 tons and 35,000 tons respectively, according to figures from the International Pepper Community.
Source: Thanh Nien News
The estimate is based on a drop in the volume of exports in the first five months of the year, he said.“Farmers don’t want to sell pepper now because they see increasing farming costs, so they want to wait for a higher price,” Nam said in an interview in Ho Chi Minh City recently.“Vietnamese pepper exporters are having difficulties buying from farmers.”
Exporters’ production costs have increased after the State Bank of Vietnam raised interest rates three times this year to slow the fastest inflation since at least 1992.
Producers may hold back stock to wait for higher prices next year, Nam said.The International Pepper Community, an association of producing countries based in Jakarta, forecasts a shortage of 54,000 tons of the spice globally this year, according to Nam.
Vietnam’s pepper association reduced forecasts for exports this year from 80,000 tons as banks increased lending rates to as much as 21 percent.The central bank raised interest rates to 14 percent from 12 percent on June 11.
“Without increasing the buying price, traders don’t have much money because banks are charging a high interest rate for loans,” Nam said.Farmers can stock pepper for about three years without damaging the quality of the spice, he said.Vietnam’s average export price in the first five months of this year was US$3,500 a ton, compared with $3,300 a ton in 2007, according to the HCMC-based Vietnam Pepper Association, which represents 27 Vietnamese exporters.
“This will definitely boost exports from India as it is the second-biggest producer and push up local prices,” Harish Galipelli, head of research at Karvy Comtrade Ltd., said by phone from the southern Indian city of Hyderabad.Vietnam shipped 35,000 tons of pepper with a turnover of $124 million in the first five months of the year, compared with 39,000 tons of exports worth $107 million in the same period last year.
Vietnam earned $271 million from 83,000 tons export last year.The country’s largest pepper-growing areas are the southern provinces of Binh Phuoc, Dong Nai and Ba Ria-Vung Tau.The country’s exports started with 10,000 tons in 1996, peaking at 116,000 tons a decade later.The country produced 85,000 tons of the spice last year.The next biggest growers were India and Brazil, which produced 50,000 tons and 35,000 tons respectively, according to figures from the International Pepper Community.
Source: Thanh Nien News
Monday, July 7, 2008
India Spice Exports Up 20 Per Cent
India's spices export in the first two months of the 2008/09 fiscal year rose 20 percent in volume terms on the back of strong demand for pepper, chilli and jeera, the Spices Board said on Monday.
Total spices exports during April-May was at 98,570 tonnes, compared with 82,210 tonnes a year-ago, it said in a statement.
In value terms, exports rose 28 percent to 8.85 billion rupees during the period from 6.91 billion rupees in the year ago period.
Spice oils, oleoresins and mint products together contributed 35 percent of the total export earnings, while chilli contributed 27 percent followed by pepper, jeera and turmeric, it said.
Pepper exports during the period rose 17 percent to 5,750 tonnes. India, the second largest pepper producer and exporter, exports mainly to U.S., U.K., Italy, Germany and Canada.
Cumin seed, or jeera, exports grew three times in April-May due to strong export demand on hopes of lower production in other major producing countries like Syria and Turkey.
The country exported about 6,500 tonnes, compared with 2,180 tonnes a year-ago. India is the world's largest jeera producer and exporter.
Chilli exports in the same period rose 21 percent to 50,000 tonnes on strong demand from Pakistan, which is the main competitor to India in international markets, it said.
Exports of spice oils and oleoresins increased 41 percent to 1,500 tonnes, while mint products exports rose 21.1 percent to 2,900 tonnes during April-May, the statement said. However, exports of spices like turmeric, cardamom, ginger and fennel was lesser than the year-ago period.
Turmeric exports declined 7.1 percent to 8,550 tonnes due to higher prices in domestic markets, which diverted buyers towards cheaper sources like Myanmar.
Turmeric prices in Nizamabad spot market almost doubled to 4,100 rupees in June compared to the year-ago period on lower output.
India produces over 4 million tonnes of spices and exports around 180 spice products to over 150 countries.
Source: Reuters
Total spices exports during April-May was at 98,570 tonnes, compared with 82,210 tonnes a year-ago, it said in a statement.
In value terms, exports rose 28 percent to 8.85 billion rupees during the period from 6.91 billion rupees in the year ago period.
Spice oils, oleoresins and mint products together contributed 35 percent of the total export earnings, while chilli contributed 27 percent followed by pepper, jeera and turmeric, it said.
Pepper exports during the period rose 17 percent to 5,750 tonnes. India, the second largest pepper producer and exporter, exports mainly to U.S., U.K., Italy, Germany and Canada.
Cumin seed, or jeera, exports grew three times in April-May due to strong export demand on hopes of lower production in other major producing countries like Syria and Turkey.
The country exported about 6,500 tonnes, compared with 2,180 tonnes a year-ago. India is the world's largest jeera producer and exporter.
Chilli exports in the same period rose 21 percent to 50,000 tonnes on strong demand from Pakistan, which is the main competitor to India in international markets, it said.
Exports of spice oils and oleoresins increased 41 percent to 1,500 tonnes, while mint products exports rose 21.1 percent to 2,900 tonnes during April-May, the statement said. However, exports of spices like turmeric, cardamom, ginger and fennel was lesser than the year-ago period.
Turmeric exports declined 7.1 percent to 8,550 tonnes due to higher prices in domestic markets, which diverted buyers towards cheaper sources like Myanmar.
Turmeric prices in Nizamabad spot market almost doubled to 4,100 rupees in June compared to the year-ago period on lower output.
India produces over 4 million tonnes of spices and exports around 180 spice products to over 150 countries.
Source: Reuters
Saturday, July 5, 2008
Indian Pepper Rises In Tight Supply
Indian pepper futures moved up on Friday on a tight supply situation and tracking low rainfall in major growing regions, which may affect production, analysts said.
"Arrivals are very low in the spot market as farmers are not offloading their stocks on the expectation of further price rise," said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd.
Harvesting is over in Vietnam and prices have started rising there, which also supported the market, he said. In Vietnam, the largest producer and exporter, harvesting period is March-June.
Rainfall has eased in Kerala, a major growing region, which is likely to affect the flowering in the spikes of the plants, said an analyst with Anagram Comtrade Ltd.
Kerala contributes about 90 percent of the total production. The plant needs well distributed rain for better flowering, which normally happens during June and July.
The August contract would face resistance at 14,375 rupees and get support at 14,000 rupees, Ratandhara said.
Open interest for August contract rose to 8,779 tonnes from 8,536 tonnes the previous session.
Spot pepper rose 1.4 percent to 14,334 rupees per 100 kg in spices hub of Kochi in Kerala.
Source: Reuters
"Arrivals are very low in the spot market as farmers are not offloading their stocks on the expectation of further price rise," said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd.
Harvesting is over in Vietnam and prices have started rising there, which also supported the market, he said. In Vietnam, the largest producer and exporter, harvesting period is March-June.
Rainfall has eased in Kerala, a major growing region, which is likely to affect the flowering in the spikes of the plants, said an analyst with Anagram Comtrade Ltd.
Kerala contributes about 90 percent of the total production. The plant needs well distributed rain for better flowering, which normally happens during June and July.
The August contract would face resistance at 14,375 rupees and get support at 14,000 rupees, Ratandhara said.
Open interest for August contract rose to 8,779 tonnes from 8,536 tonnes the previous session.
Spot pepper rose 1.4 percent to 14,334 rupees per 100 kg in spices hub of Kochi in Kerala.
Source: Reuters
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