Black Pepper Prices Advanced - Nov 06, 2009

Pepper higher prices led to lower physical demand in the domestic markets. Export demand too was dull with the ASTA grade black pepper quoting at US$3,325 PMT FOB Cochin, while Brazil ASTA grade black pepper quoted at US$3,000 PMT FOB.

The new domestic crop would hit markets by the end of December while the new crop from Vietnam would start by January.

These will ease supply concerns in the international markets. Garbled variety pepper quoted at Rs15,000 per quintal amid arrivals of 250 quintals and off-take of 100 quintals.

Turmeric Traded During The Range Of Lower - Nov 06, 2009

Turmeric high price hit turmeric with little or no trade being reported at the benchmark Nizamabad market. Turmeric traded in the range of Rs112-120 per kg, but settled lower at Rs112 per kg in late evening.

We expect demand destruction at international markets to continue in the coming days, given the life-high price for turmeric. Stock at the end of October is reported to be approximately 5/5.5 lakh bags, sufficient for 2 to 2.5 month consumption. The new crop is reported to be good shape with crop estimate ranging around 52-53 lakh bags.

Jeera Traded Is Steady - Nov 05, 2009

Jeera cumin traded steady at the benchmark Unjha market. Arrivals stood at 8,000 bags and about 10,000 bags were traded in the day. There was some export demand from Europe and USA while demand from gulf countries was subdued. 1% quality jeera traded in the range of Rs2,540-2,550 per 20kg while export quality jeera quoted around USD2,600.

Weather is supportive for jeera crop and traders expect acreage this year to be similar to that of the last year.

We can see firm export demand in the coming days, as export quality jeera is quoting competitive to jeera from Syria, which in turn will cushion jeera price in the domestic market.

Weather could play a price decider in days to come, as favourable weather would lead to higher crop this year, which in turn could push prices down.

Wheat Price Rallied During The Last Few Week - Nov 03, 2009

Wheat amid confirmation from the government regarding the offloading of 5 lakh tonne of wheat in the price range of Rs1,379-1,728 per quintal, spot markets of wheat have rallied in the last few weeks. The arrivals at the Delhi markets are around 8,000 bags while the price quoted for wheat is at Rs1,330 per quintal (excluding exp).

We believe that the price rise should take a halt, however, any delay in further releasing the stock could fuel up the price, as the stock with the private traders is minimal.

The sowing of wheat has begun in the northern areas and would augment in the coming days too. Wheat sowing is expected to rise, given the high market price supported by favourable soil moisture due to late rains in the northern region.

Turmeric Exports A Slowdown Demand - Oct 30, 2009

Turmeric a slowdown in demand was witnessed at the major markets with very little trades reported at the physical markets. Turmeric at the spot markets is ruling at Rs106-107 per kg while the demand from the domestic as well as the overseas markets remains dull.

The crop size this year is estimated at 52/53 lakh bags, higher by 20% as compared to the last year’s size.

This would have its effect in the medium term once the new crop arrives. However, given the tight supply situation the price and the low demand, we expect the price to stay steady at this price in the coming days.

Jeera Exports At Steady Demand - Oct 30, 2009

Jeera steady business was observed at the benchmark Unjha market of jeera, as there were arrivals of around 7,000 bags and business of about 8,000 bags was concluded during the day. The price quoted for the NCDEX quality jeera was steady at Rs12,250 per quintal (excluding tax).

Export quality jeera too quoted steady at $2,450 while jeera from Syria traded at around $2,650-2,700 per tonne.

We expect that given the discount in the export price, the Indian demand for cumin could continue to be firm. However, congenial weather and sowing of jeera could add pressure in the medium term.

Turmeric Exports At Higher Price - Oct 29, 2009

Although the demand for turmeric at these higher price was lower, yet turmeric’s price continued to gain due to lower stocks at the major markets of India. The price of turmeric at the benchmark Nizamabad market was quoted at Rs108 per kg while a little business was concluded during the day.

Importers sidecast themselves to cover their cargo at these higher rates. Stock position of turmeric is forecast in the range of 5/5.5 lakh bags at the end of the current month.

New crop supply would resume in January and the crop size is expected to be around 52/53 lakh bags by the industry traders.

We believe that lower demand at the current higher rates could curtail the demand in the coming days.

Jeera Exports From Fair Demand - Oct 28, 2009

Jeera fair demand from exporters was noticed yesterday too with the exporters buying around 3,000 bags of jeera, indicating a rise in overseas demand. The demand for Indian jeera is rising due to higher price quoted by Turkey/Syria jeera even though their crop size is forecast to be higher.

Indicative prices (C&F) of Indian jeera are $2,500/tonne for Latin America and the Middle East countries, $2,700-2,800/tonne for Europe and $2,900/tonne for America. Arrivals were reported be around 9,000 bags, while the same was concluded during the day.

Jeera price has risen sharply in the last one week, which may call for some correction in the near term so as to have a sustained overseas demand.

We expect the price to correct in the near term. Weather for jeera sowing is congenial in the Gujarat, which might lead to a higher acreage this year too.

Jeera Markets Opened A Week - Oct 27, 2009

Jeera markets opened after a week’s holiday and the markets saw arrivals of around 8,000 bags on Saturday. Jeera traded steady following mixed demand from overseas as well as domestic markets.

Swoing has begun in few areas of Rajasthan while it would pick pace in Gujarat in the coming days. Jeera stock at major markets has been reported at 10 lakh bags.

Fair overseas demand has been reported, which could be noticed from the export figures last week. We expect the price to remain higher supported by higher overseas demand.

Chana Exports Continued Buying - Oct 26, 2009

Chana Continued buying by millers coupled with rising temperature in north India has affected the sentiments as well as china price. Arrivals at benchmark Delhi market stood at 35 trucks, while Desi chana quoted at Rs2,450 per quintal.

Similarly, kantawala chana at Indore markets traded higher at Rs2,300 per quintal amid arrivals of 3,500 bags.

Sowing is undergoing in major areas of the country, however rising temperature has fuelled speculation in the price in the last one week and this would continue to do so until November/December, when clear picture about sowing and weather would emerge. We expect price to trade steady to higher in the near term.