International Spice Commodities Update – Bloomberg Report

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Source: Bloomberg


Pepper price traded range bound as demand from
domestic buyers as well as exporters was sluggish on
account of holidays. The spot price of garbled and ungarbled
pepper traded steady on weak demand at
Rs.33600 and Rs.32100 per 100 kg respectively.
However, the downside in prices may be capped due to
supply concerns until the new pepper crop arrives in
February. Pepper price may maintain uptrend on
reports of lesser domestic crop estimates. The ongoing
Mullaperiyar dam issue involving Tamil Nadu and
Kerala has disrupted supply of the spice from these
states. Indian pepper output during the new season is
estimated to be around 43000 tonnes, which is lower by
5000 tonnes from the previous year.


Cumin futures rose because of short covering and
reports of fresh export enquiries. Also gained despite
high acreage, as the cold wave might impact
germination in Rajasthan, in turn affect the output.
According to the IMD report, cold wave conditions
prevailed in Rajasthan with Jodhpur, major jeera spot
market recording temperature of 5.4 degree Celsius.
Jeera arrivals in Unjha mandi stood unchanged at 5000
bags, from Saturday. The price was quoted at Rs.14500
per 100kg, up Rs.100 from previous day. Although
supply is ample, good quality jeera is scarce in the
market. On short term, the gains may be narrow due
to high inventories.


Turmeric futures ended up despite lower arrivals in the
spot markets. Good demand from bulk buyers in north
India supported the prices. Reports of crop damage to
the standing crops due to severe cyclone in Tamil Nadu
also added to the uptrend. Further buying is expected in
the futures market as spot prices are at a premium to
futures. Price of the spice in key Nizamabad market
traded at Rs.5100 per 100kg. However, the overall trend
remains weak due to estimate of higher turmeric output
in 2011-12. Fresh crops are expected to reach the market
by mid January, provided the weather pattern supports.
As of 31st December 2011, turmeric stocks in the NCDEX
accredited warehouse stood at 3523 tonnes, down from
4053 tonnes a week ago.


Cardamom futures closed up as the auctions in Kerala
resumed. Earlier the agitations across the border on
Mullaperiyar dam have stopped movement of
cardamom between both the states. The auction centre
reported good turn out of cardamom dealers including
those from Tamil Nadu. There was good demand with
the average price at the auction touched Rs.596 per kg.
Higher quantity of cardamom was traded at the auction
centre. The total production in the current year is likely
to be around 15000 tonnes. Traders estimated that the
world’s total cardamom production is likely to reach
38000 tonnes in 2012 against the total annual demand of
30000 tonnes.


Most chilli futures erased early gains and ended down
on profit sales and slackness in domestic demand.
Earlier chilli futures gained tracking the trend in spot
market where fall in supplies supported the prices.
Chilli arrivals in Guntur market fell to around 20000
bags from 23000 bags reported on Friday. Rainfall for
the last few days led to fall in supply. The price for 334-
variety chilli quoted Rs.7200 per 100 kg, up Rs.200 from
previous trading day. Rainfall in the last couple of days
in major districts in Andhra Pradesh is likely to be
beneficial for the crops.


Coriander futures gained in tandem with rising spot
market. The spot price rose due to fall in arrivals on
unfavorable weather conditions in major regions. Total
coriander arrivals in Rajasthan fell to around 1300 bags
from 2800 bags on Saturday. In Kota, coriander arrivals
fell to around 400 bags from 800 bags Saturday, while in
Baran, supply were around 300 bags, down from 700
bags. Arrivals in Ramganj also fell by 700 bags to
around 600 bags. In Kota, coriander quoted Rs.4000 per
100 kg, up Rs.100 from the previous trading.

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