Turmeric Futures Up, Pepper Down

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