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India spices seen mixed; pepper down on weak exports.


Date: 05-03-2009
Subject: India spices seen mixed; pepper down on weak exports
Indian jeera futures are likely to open steady on Thursday as pressure from rising new crop arrivals is likely to be offset by worries over an output shortfall this season, analysts said.

Bad weather in the months of December and January in the main growing regions of Gujarat and Rajasthan hurt output.

The benchmark March contract NJEH9 ended up 1.62 percent at 11,802 rupees per 100 kg the previous session. It may open around 11,822-11,835 rupees, an analyst said.

PEPPER:

India pepper futures are likely to open down as continued slowdown in export demand, and worries over overseas demand shifting to Vietnam in the coming weeks, will keep prices under pressure, analysts said.

Harvest will pick in Vietnam, the largest producer and exporter, in the next two weeks.

Demand is seen shifting to the country, where prices are likely to be lower than Indian rates, due to the huge crop surplus, analysts said.

The benchmark March contract NPEH9 ended up 1.99 percent at 10,871 rupees per 100 kg in the previous session.

It may open around 10,830 rupees on Thursday, an analyst said. 

TURMERIC:

Futures, which hit contract highs in the previous session, may extend gains on lesser supplies for 2009, but profit-taking, driven by rising arrivals in spot market, may limit the upside, analysts said.

Thin carryover stocks from last year, along with the lower projected output, may result in a 16 percent drop in supply to 4.55 million bags of 70 kg each from 5.4 million, a Reuters poll of six top traders and exporters showed last month.

Farmers have hastened harvesting process and arrivals are increasing in major spot markets in Andhra Pradesh and Maharashtra.


Source :  Reuters India.


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