India jeera, turmeric up on overseas sales
MUMBAI: Jeera, or cumin seed, futures in India rose in afternoon trade, bolstered by robust export and local demand while declining spot supplies at the end of the peak arrival season supported buying.
Local demand is strong and likely to stay firm in the coming months due to upcoming festivals, analysts said.
At 0746 GMT, the August jeera contract on the National Commodity and Derivatives Exchange (NCDEX) was up 2.09 percent at 15,970 rupees per 100 kg.
"Sentiments are firm because of export demand and poor rains in our state. Prices are expected to stay firm," said Arvind Patel, a trader from Unjha, a leading market in Gujarat.
Daily arrivals at Unjha, a key market in Gujarat, have been around 10,000 bags of 70 kg each against the trade of 12,000-13,000 bags.
In April, cumin exports rose 6 percent to 2,500 tonnes from a year ago.
Jeera is a winter crop, planting of which begins in October, and farmers depend on the monsoon to moisten the land for sowing.
At Unjha spot market jeera rose 33 rupees to 15,629 rupees per 100 kg.
Turmeric futures rose to the highest intra-day permissible upper limit on fresh buying buoyed by strong overseas sales and on expectations of a decline in the area under cultivation after prices fell sharply since last year.
Scanty rains so far in key growing regions also raised concerns over the growth of the sown crop.
The August turmeric contract on NCDEX was up 4.03 percent at 5,476 rupees per 100 kg.
"Prices have reached this level because of shortage of rainfall. Stockiest buying is strong and prices are likely to remain firm," said R.K. Vishwanath, a trader from Erode in Tamil Nadu.
The total area under cultivation in India, the world's biggest producer and exporter of the yellow spice, is likely to fall 30 percent this season.
Turmeric is planted between June and August and takes about nine months to harvest.
In April, turmeric exports edged up 1 percent to 7,300 tonnes from a year ago.
Pepper futures were higher due to thin spot supplies on the back of lower output and dwindling stocks.
The most-active August contract on the NCDEX gained 0.86 percent to 43,545 rupees per 100 kg.
"Trend is positive as supplies are insufficient to meet the demand. The most-active August contract may touch 43,650 rupees by the end of the day," said Chowda Reddy, senior analyst at JRG Wealth Management.
In Kochi, a key market in Kerala, spot pepper rose 139 rupees to 42,094 rupees.
However, weakening overseas demand restricted the upside.
Analysts said Indian-origin pepper has few takers as it is quoted $700-$1,000 per tonne higher than other origins.
In April, pepper exports fell 47 percent to 1,200 tonnes from a year ago.
India is the third largest pepper producing country in the world after Vietnam and Indonesia.
Source : economictimes.indiatimes.com