Daily Report of International Spice Commodities
Pepper futures ended with slight positive edge on improved buying interest in the counter. Robust overseas market demand also supported the sentiments. As per the latest updates from media Vietnam pepper exports has crossed 70000 tons. Spot prices remained firm and traded near Rs 28000 per quintal. Arrivals were reported in Indonesia and Malaysia and as per media reports production expectation from these countries are not encouraging. As per IPC estimates the production in Indonesia is expected around 37000 tons while that of Malaysia and Brazil were expected near 25000 tons and 34000 tons respectively. Harvesting in Brazil is expected to start from August onwards. However Vietnam decision to increase the export quota can increase the supply in international market.
Cumin futures escalated on robust demand and fresh enquiries on export. Arrivals in the physical market increased on improvement in demand prospects. Spot prices traded near Rs 13800 per quintal and arrivals were reported near 12000 bags against 6000 bags in the previous day. However high moisture due to the advent of monsoon can erode the quality of Cumin and this can create more hurdles in arrivals to physical market. Syrian and turkey crop is expected to reach in the international market on mid of July onwards. As per media quotes, overseas demand from Bangladesh as well as middle east is expected to increase in near future. And the reported poor quality produce from Syria will give more competitive edge to Indian cumin seed in the international market.
Turmeric futures ended with marginal loss since higher arrivals as well as slow down in demand dampened the buying sentiments. As per the last update, Spot prices in Nizamabad traded near Rs 7500 per quintal and fresh arrival were reported near 3000 bags compared with 2500 bags in the previous day. Spot prices in Erode traded near Rs 7700 per quintal and arrivals were reported near 9000 bags compared with 11000 bags in the previous day. According to media quotes, more promising business is expected only from August onwards. Lower prices in the physical market and below normal rainfall prediction from IMD augmented the worries of the farmers. Due to this turmeric cultivation in the major growing areas is getting slow paced.
Cardamom futures edged higher on bargain hunting. Favorable climate in the growing region limited the upside. However upcoming festival demand especially Ramdhan is expected to increased the demand in near future. And more demand from East Asian countries is expected during this period. According to last updates, average spot prices improved and traded near 659.21 per ton and arrivals are reported near 13 tons compared with 58 tons previous day. According to trade estimates production in India is slightly higher than 11000 tons. As per the estimates of spices board the production in Guatemala expected near 20000 tons. As per media sources , total arrivals during the current season from August 1 to June ,2011, stood at 10856 tons which is approximately six percent higher than last year arrivals.
Chilli futures ended with marginal gains since the decline in arrivals in the physical market supported the prices. As per media sources, improvement in overseas demand from Srilanka, Thailand and Malaysia limited the downside. As per last update, spot market prices traded near Rs 8700 per quintal and fresh arrivals were reported near 20000 bags compared with 35000 bags in the previous day. As per market sources, total stock in Guntur is expected around 47-48 lakh bags, out of this quality produce is expected around 30-35 lakh bags. As per Andhra Pradesh government estimates as quoted in the media, the Chilli sowing shows a declining trend and major production belts received moderate rainfall. It is 17 percent less than previous year.
Coriander futures escalated on improved demand scenario. Spot prices in Kota traded near 4880 per quintal and arrivals were reported near 3000 bags. Total arrivals were reported at 13000 bags. Usual arrivals season starts from February and extend till May end. Total carry over stocks has been estimated 25-30 lakh bags. Erratic weather condition during the sowing period had decreased the acreage under cultivation. As per Ncdex reports, Coriander production in 2010-11 is estimated to be around 2.8-3 lakh MT. And for the year, 2010-11, India exported 40500 MT.
Profit booking drags pepper futures
Pepper prices extended losses by losing Rs 184 to Rs 27,515 per quintal in futures trade today due to continued profit-bookings by speculators on sluggish demand in the spot market. At the National Commodity and Derivatives Exchange, pepper for delivery in July fell by Rs 184 or 0.66 per cent to Rs 27,515 per quintal, with an open interest of 2,375 lots.
Likewise, the spice for delivery in August lost Rs 72 or 0.25 per cent to Rs 28,422 per quintal with a trade volume of 8,407 lots. Analysts said besides profit-bookings by speculators, sluggish spot market demand mainly led to the fall in pepper futures prices
Cardamom down on sluggish demand
Cardamom prices declined by Rs 7.90 to Rs 904.20 per kg in futures trading today as speculators reduced their positions, driven by weak trend at the spot markets on sluggish demand. Adequate stocks positions following fresh arrivals from producing belts also put some pressure on the prices.
At the Multi Commodity Exchange, cardamom for delivery in September declined by Rs 7.90 or 0.87 per cent to Rs 904.20 per kg, with a business turnover of 55 lots. Similarly, the spice for delivery in August shed Rs 2.20 or 0.25 per cent to Rs 874 per kg with an open interest of 206 lots.
Analysts said speculators reduced their holdings due to sluggish demand in the spot market, causing the decline in cardamom prices at futures trade.
Spot turmeric prices fallon lack of fresh orders
ERODE, Crop: Spot turmeric prices decreased by Rs 200 a quintal on Tuesday on lack of fresh orders from North Indian buyers.
“ Erode traders have not received fresh orders from North India and so the price of the yellow spice decreased by Rs 200 a quintal. The hybrid variety suffered a decline of Rs 300/quintal. Further, rains have started in North India and merchants did not place orders for the last couple of days for turmeric,” said Mr R.K.V. Ravishankar, President, Erode Turmeric Merchants Association.
Turmeric farmers brought only 7,500 bags on Tuesday expecting a good price. But fifty per cent of the farmers have sold their produce at the quoted price and the remaining fifty per cent brought back their turmeric saying the price was not feasible for them. Only 45 per cent of the turmeric that arrived were sold. He said farmers have started bringing reduced quantity and this will create an increase in price in the next couple of days.
Bulk buyers said now they are concentrating on local orders due to the non-receipt of orders from North India. They said only after the rain fresh orders may be received by them and till then they are depending on local orders placed by masala producers.
At the Erode Turmeric Merchants Association Sales yard, finger variety fetched Rs 5,134-7,519/ quintal, root variety Rs 4,896-6,499/ quintal.
Salem crop: Finger variety was sold at Rs 6,889-7,739/ quintal, root variety Rs 6,011-6,725/ quintal. 2,089 bags of turmeric arrived for sale and 497 bags were sold.
At the Gobichettipalayam Agricultural Cooperative Marketing Society, finger variety was sold at Rs 6,006-7,460/ quintal, root variety Rs 5,166-6,460/ quintal. Out of 166 bags kept for sale, 136 were sold. At the Erode Cooperative Marketing Society, finger variety was sold at Rs 6,066-7,469/ quintal, root variety Rs 5,989-6,389/ quintal. Out of the 1,056 bags that arrived, 1,035 were sold. At the Regulated Marketing Committee, finger variety was sold at Rs 6,699-7,411/ quintal, root variety Rs 5,806-6,486/ quintal. Out of 491 bags kept for sale, the farmers confirmed the price for 382 bags and sold the same.
Pepper market falls on liquidation
KOCHI: Pepper market on Tuesday fell sharply on liquidation and switching over. The market, in fact, was highly volatile as usual and the drop was in the closing hours, trade sources said.
Validity of an estimated 900 tonnes would expire on August 5 and and some more quantity is expected to come up for delivery. But apprehensions are there on the quality of this validity expired stocks, as they are kept in poor storage conditions of private warehouses in unfavourable climatic conditions. This material will come up for delivery and hence long position holders were liquidating and switching over due to good ‘badla’ available now, market sources told Business Line.
Material, at present, is available only on the exchange platform as there were no sellers on the spot as they do not want to offer at the current rates, they said. The volatility in the market was evident from the high buying depth which was said to have gone up to 12,000 tonnes, while the selling depth touched the highest level of 4,000 tonnes.
“This is not a good sign and to put the trade to that levels one should have sufficient money,” they claimed.
July contract on the NCDEX fell by Rs 501 to close at Rs 27,198 a quintal. August and September dropped by Rs 422 and Rs 387, respectively, to close at Rs 28,072 and Rs 28,544 a quintal. Total turnover moved up by 619 tonnes to 8,480 tonnes. Total open interest declined by 46 tonnes to 12,713 tonnes.
July open interest dropped by 639 tonnes to 1,850 tonnes, while that of August and September moved up by 540 tonnes and 38 tonnes, respectively, to 8,479 tonnes and 1,467 tonnes. Spot market remained unchanged in the absence of any activity at the previous levels of Rs 27,000 (ungarbled) and Rs 28,000 (MG 1) a quintal.
Indian parity in the international market was at $6,450 a tonne (c&f) and remained competitive, some claimed, while others were spreading rumours that material was available cheaper in Vietnam, they said
Cardamom steady on export purchase
Kochi: Cardamom prices continued to rule steady last week on some buying interest from upcountry dealers at auctions held last week.
Though exporters continued to buy, they seem to have slowed down their purchases compared with the previous weeks. Some 50-60 tonnes were said to have been bought by them. Meanwhile, upcountry buyers have entered the market and started buying small quantities for the ensuing festival season, trade sources said.
“Export buying is likely to continue as current prices are viable for them”, Mr P. C. Punnoose, General Manager, CPMC, told Business Line. According to him, the market will determine the price.
At the Sunday auction conducted by KCPMC, he said, arrivals stood at 60 tonnes and the entire quantity was sold out. The maximum price fetched was Rs 1,028.50 a kg and the minimum, Rs 463. Individual auction average was at Rs 690.60 a kg as against Rs 704 the previous week, he said.
Demand for new crop
Nearly 60 per cent of the arrivals at the auctions held last week were of the new crop and 40 per cent of the previous crop. Demand is for new crop. However, the arrival of 8 mm bold capsules was negligible at around 10 per cent, they said. Trade sources in Bodinayakannur told Business Line that 8 mm bold, good colour was fetching Rs 1,100 a kg Monday.
The individual auction average, which was vacillating between Rs 700 and Rs 750 a kg at the auctions in Kerala and Tamil Nadu during the week before last, dropped last week to below Rs 700 a kg.
Total arrivals during the current season stood at around 12,556 tonnes. Of this, an estimated 12,235 tonnes were sold. Arrivals and sales in the same period of the previous season were estimated at 10,160 tonnes and around 9,970 tonnes, respectively.
The weighted average price as on July 17 was at around Rs 995 a kg, as against about Rs 876 on the same day last year.
Prices were nearly steady at Kumily and Bodinayakannur on Monday. In Kumily, the prices per kg for graded varieties were: AGEB, Rs 900-950; AGB, Rs 750-770; AGS, Rs 695-725; and AGS 1, Rs 670-690.