Daily Market Reports of International Spice Commodities
Pepper futures edged higher in the initial trades on weak supplies in the spot market and also on positive demand but later eased by around 0.5 percent at close. Usually October to December period is good international business since Europe and US winter consumption will be supporting the demand. Spot prices last traded at around Rs. 31400 from Rs. 31500 in the morning. Arrivals in the spot market were reported to around 360 quintals compared to 200 quintals previous day. According to IPC the world pepper production in 2011 is estimated near 310000 tons and the projected demand is expected near 330000 tons. There is likelihood for a fall in supply from other pepper exporting countries. Arrivals from Indonesia Lumpung region is likely to be lesser compared to the previous year’s arrivals. Adding to that the supplies from Vietnam and Brazil are likely to fall short. International prices for Indian pepper were last reported to be around $7600 per ton.
Cumin futures edged lower on profit booking as well as on weak demand in domestic and international market. Rains in key cultivating areas are likely to put pressure on prices. Cultivation begins from October and goes through out December. Expectation of overseas demand from Middle East and South America is expected to support prices. Spot prices weakened and last traded around Rs 14000 per quintal on weak demand where as, arrivals in the spot market were reported at 6000 bags compared with 5000 bags the previous day. The demand weakened and it was for around 5000 bags. Poor weather conditions in other producing countries Turkey and Syria will support the price rise in the upcoming months. As per media sources, cumin cultivation in Gujarat estimated near 65.77 lakh hectares compared with 87 lakh hectares in the previous year same period. And the reported poor quality produce from Syria will give more competitive edge to Indian cumin seed in the international market.
Turmeric futures traded range bound on strong export demand. Spot prices in Nizamabad traded near 6200 per quintal and arrivals were reported near 1000 bags against 1200 bags in the previous day. Spot prices in erode traded near Rs 5000 per quintal and arrival were reported near 6000 bags. Sowing in Andhra Pradesh had picked up since monsoon shower in the past weeks created ideal condition for cultivation. As per Reuters, farmers had cultivated turmeric on 54000 hectares against 58000 hectares in the previous year. Production in 2010-11 is estimated near 70 lakh bags compared with 48 lakh bags in the previous day.
Cardamom futures fell on weak spot demand as well as on better production estimates. However, good export demand limited the losses. Heavy arrivals in the spot market also weighed on the prices. Upcoming festival demand is expected to increase in near future and more procurement is expected from North India. According to last updates, average spot prices remained weak and traded near 540 per kg and arrivals are reported near 81 tons compared with 40 tons previous day. According to trade estimates production in India is slightly higher than 12000 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 July 2011, stood at 12973 tons which is approximately 32 percent higher than last year arrivals.
Chilli futures traded firm on steady arrivals in the spot market. Weak exports also weighed on the prices. Exports were reported to be down by around 38 percent. Spot market prices rose in Guntur market in Andhra Pradesh trading near Rs 8800 per quintal and arrivals were reported near 50000 bags compared with 30000 bags the previous day. Monsoon shower in the major growing places of Andhra Pradesh can augment the chilli cultivation. As per media quotes, present area under cultivation had dropped by 30.19 percent to 0.37 lakh hectares in Andhra Pradesh. 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. Monsoon is crucial for better chilli cultivation.
Coriander futures initially traded range bound but later edged lower due to profit booking. Weak demand in the spot market also weighed on the prices. Arrivals were reported to be around 5000 bags in Kota Mandi. Volume had shown a declining trend which shows declining participation on continuing bearish sentiments. Total carryover 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.
SPECIAL REPORTS (Business Line)
Chilli, turmeric fall on subdued demand
Red chilli and turmeric prices fell by Rs 100 a quintal each in the national capital on Monday on reduced offtake by retailers and stockiest due to subdued demand in the domestic markets amid adequate stocks. Weak trends at futures market also put pressure on the prices.
Red chilli and turmeric prices declined by Rs 100 each to settled at Rs 8,900-13,400 and Rs 7,700-11,300 a quintal respectively. Marketmen said subdued export and domestic demand against adequate stocks also put pressure on chilli and turmeric prices on the wholesale kirana market here.
Following are today’s quotations in rupees: Ajwain 17,500-23,000, betelnut (kg) 110-120, cardamom brown-Jhundiwali (kg) 950-1,050, and cardamom brown-Kanchicut (kg) 1,150-1,250. Cardamom small (kg): Chitridar 530-560, cardamom (colour robin) 550-600, cardamom bold 560-600, cardamom extra (bold) 750-850 and cloves (kg) 950-1,000.
Cardamom futures gain on spot demand
Cardamom prices rose by Rs 11.80 to Rs 769.90 per kg in futures trade today as traders enlarged their commitments, motivated by a pick-up in export and domestic demand. The tight stocks position following lower arrivals in the spot market from producing regions also influenced prices in the futures market here.
At the Multi Commodity Exchange, cardamom for October contract delivery rose by Rs 11.80 or 1.55 per cent to Rs 769.90 per kg with a business turnover of 149 lots.In a similar fashion, the spice for November contract delivery gained Rs 11.30 or 1.41 per cent to Rs 811.50 per kg with a trading volume of 49 lots, while cardamom for current month delivery rose by Rs 9.10, or 1.30 per cent to Rs 708.90 per kg in 262 lots.Market analysts attributed the rise in cardamom futures prices to strong export and domestic demand amid restricted arrivals in the spot market.
Coriander futures decline on profit-booking
At the Multi Commodity Exchange, coriander futures for September contract delivery fell by Rs 150, or 2.90 per cent, vis-a-vis their previous close to Rs 5,025 a quintal, with a trading volume of one lot. Market analysts said in addition to profit-booking by speculators at existing higher levels, subdued demand in the spot market led to the decline in coriander futures prices.