Daily Market Reports of International Spice Commodities
Pepper contracts hit the initial upper price limit on expectations of increase in demand from overseas countries. Pepper opened weak but then rose to hit the 3 percent upper limit. The spot price of garbled and ungarbled pepper in Kochi mandi rose to Rs.317 and Rs.307 per kg, up Rs.5 each from previous day. The arrivals stood at around 3.5 tonnes while the offtake was reported at around 5 tonnes. Lower stocks in Vietnam, the world’s largest pepper producer and exporter, is expected to bring demand from overseas market to India. As permarket source tight supply ahead of the Diwali festival in October also boosted sentiments. As per media report, in Vietnam the domestic price hit 15 years high due to strong demand and tight supply. The overseas buyers especially from America and Europe are estimated to have tightavailability of stocks where Vietnam is estimated to have carryover stocks of less than 20000 tonnes.
Cumin ended weak on profit booking. However, lower arrivals in Unjha mandi due to heavy rain in Gujarat and good domestic demand are expected to support the market. Lower carry over stocks may also support the prices in near future due to lower production last year. The spot price was reported at around Rs.16000 per quintal where as the arrivals stood weak. Demand has increased for Cumin in the spot market; it was last reported to be for around 11000 bags. According to various exporters, enquires for Indian Cumin has started from Bangladesh and also from US. Also poor weather conditions in other producing countries like Turkey and Syria will support the price rise in the upcoming months. And the reported poor quality produce from Syria will give more competitive edge to Indian cumin seed in the international market. As per media sources, cumin production will be around 21 lakh bags compared to 28 bags last year. The exports also fell by around 40 percent to 7750 tonnes for period April to July 2011.
Turmeric futures hit 2 percent upper limit on bargain buying and short covering after declining in the past few sessions. Higher arrivals and weak export and domestic demand pulled the market. Turmeric arrivals in Erode market were around 7000 bags compared with 9,000 bags on previous day and the prices traded at around Rs.5000. However as per market source, high stocks in exchange warehouses may limit sharp gain. Favorable weather in Andhra Pradesh pushed the expectations of better crops this year and is likely to restrict further upside. Production in 2010-11 is estimated near 85 lakh bags compared with 48 lakh bags in the previous year.
Cardamom Strong supplies in the physical market are pressurizing the market trend. Reduced offtake by retailers and stockiest due to slow down in domestic demand also added to the weak trend. The arrivals stood at around 72-75 tonnes on daily basis. As per media report, fresh arrivals of around 3.55 lakh kg have been reported during September first week. The total arrivals were almost 20 percent higher than the previous year in the same period, and it thereby indicates sufficient availability of stock in the market. This was mainly due to strong production in the current year. Traders are expecting the total production of around 15000 tonnes in the current year. However as per traders estimate the export demand is expected to rise by October from west Asian countries on account of festive season in November.
Chilli futures hit the initial upper limit tracking the spot market trend where the price traded up on good export demand. Chilli prices rose on report of demand from Pakistan due to crop damage in the country due to heavy rain and flood. In Guntur mandi the price was quoted at around Rs.8990 per 100 kg. Chilli prices also find support due to lower output expectations as sowing is lagging in the country’s largest producing state; AndhraPradesh. Chilli acreage in Andhra Pradesh was down 39 percent on year at 93,432 ha as of Wednesday, according to data from the state agriculture department. The crop in Madhya Pradesh may also get delayed by more than one month due to heavy rain in major growing areas.
Coriander spot and futures market slipped tracking the rise in supply in the spot markets. Coriander arrivals in the Kota mandi of Rajasthan were at around 3000 bags against 2000 bags and the prices was quoted at Rs.5300, down Rs.50 from previous day. The availability of stocks has been high in the market due to weak export during the current financial year. Currently around 3 million bags of coriander is estimated to be in the market. The export demand is expected to rise from the west Asian countries by the month of November. Reports of rain in Rajasthan and Gujarat may limit the sharp fall. As per IMD report fairly wide spread rainfall would occur over Rajasthan and Gujarat during the next few hours. Rains in the region would however begin decreasing after 24 hours.
Turmeric drops below Rs 5,000 a quintal
ERODE, SEPT. 13:
Spot turmeric dropped by Rs 100 a quintal further on Tuesday following poor demand.
“Most of the traders are not getting fresh orders from other States, especially North India. So, turmeric price is decreasing every day. On Tuesday, the hybrid finger variety decreased by Rs 300 a quintal and the hybrid root variety by Rs 500. Similarly, prices have dropped below Rs 5,000 a quintal,” said Mr R.K.V. Ravishankar, President, Erode Turmeric Merchants Association.
At the Erode Turmeric Merchants Association sales yard, traders purchased only 20 per cent of the stocks, whereas in other centres, sales were around 60 per cent of the total stock of 8,500 bags which were offered on sale.
At the Erode Turmeric Merchants Association Sales yard, the finger variety was sold at Rs 3,911-4,915 a quintal, the root variety Rs 3,636-4,381 a quintal.Salem Crop: The finger variety was sold at Rs 4,546-5,269, the root variety Rs 4,068-4,511. Totally, of the 2,052 bags kept for sales, 424 were sold.
Pepper remains hot
KOCHI, SEPT. 13:
The pepper market, after witnessing the usual tug of war, closed with a mixed trend on Tuesday with September prices marginally declining while October and November moving up.
In the afternoon, the prices hit the highest levels of the day and then slid with marginal volatility, market sources told Business Line.
Those who were holding stocks for long were showing interest to sell. Some of the national and state level co-ops were also offering to sell as the prices moved above Rs 300 levels. But, as the market moved up, sellers withdrew, they said. The high prices appear to have forced many to go for light berries and even spent pepper, they said. Good liquidation in September was there while additional buying was also good in October and November. Turnover dropped sharply. September contract declined by Rs 8 to close at Rs 33,700 a quintal. October and November moved up by Rs 140 and Rs 141 respectively to close at Rs 34,641 and Rs 35,100 a quintal.
Total turnover dropped by 2,604 tonnes to 7,623 tonnes. Total open interest moved up by 111 tonnes to 12,512 tonnes. September open interest dropped by 930 tonnes to 3,553 tonnes. October and November open interest increased by 875 tonnes and 149 tonnes respectively to close at 8,086 tonnes and 598 tonnes.
Spot prices on matching demand and supply stayed steady at Rs 30,700 (ungarbled) and Rs 31,700 (MG 1) a quintal. Indian parity in the international market was at $7,500 for Europe and $7,700 a tonne (c&f). Drastic fall in the rupee against the dollar has kept the Indian parity is competitive with all other origins except for Brazil, they said.
According to an overseas report from Vietnam today, markets ruled firm/steady with Vietnam reportedly quoting 500 GL at $7,100 a tonne (cfr) Singapore. “Lampong Asta indicated at $7,850/$7,900 a tonne from one origin seller”, it added.