Geojit Comtrade has come out with its report on spices. As per the research firm Chilli contracts are expected to trade weak on lower export demand.
Pepper futures closed 4 percent higher despite ample supply in the spot markets. The spot price of garbled and un-garbled pepper ended up following the futures market at Rs.31800 and Rs.30300 per 100kg respectively, up by Rs.500 from previous day. Indian parity was offered at around $6600 per tonne for US and near $6900 per tonne for Europe. According to latest data by Spices Board, India's pepper exports rose 43.5 percent on year to 17000 tonnes. In rupee terms, pepper exports shot up 138.7 percent to 5.19 bln rupees. For the day ahead, upside may be limited on weak export demand amid commencement of arrivals in Kochi and Karnataka market.
Jeera futures may gain on account of higher export demand and lower production estimates. Overseas demand is expected to rise in upcoming days due to availability of Indian jeera at a competitive rate in the international market. According to latest data by the Spices Board of India, during April-November 2011, India exported 26500 tonnes of jeera, up 27.7 percent compared to same period last year. Jeera production in India is estimated to fall due to reports of crops damage in major producing regions of Rajasthan and Gujarat. As per Indian Meteorological Department, cold wave has been forecast over major jeera growing areas especially in Gujarat and north Rajasthan.
Turmeric futures are seen down in the next few sessions due to high stocks and rising arrivals in the spot markets. As of Thursday, daily turmeric arrivals in Erode market were at 14000 bags. The price for finger variety was quoted at Rs.5200 and Rs.3900 per 100kg in Erode and Nizamabad market, respectively. However, reports of strong demand from traders to meet their immediate requirements may limit the fall. During April-November 2011, the nation exported 58000 tonnes of turmeric, up 63 percent compared to same period last year, as per data by Spices Board of India. According to Meteorological Department, Andhra Pradesh and Tamil Nadu would receive rainfall during the days ahead.
Cardamom is likely to plunge on the back of strong arrivals and higher production estimates. As per market source, more than 100 tonnes of cardamom are arriving in the market on a daily basis. As of Wednesday, the average price in major auction centre stood at around Rs.480 per kg. However, reports of overseas demand due to availability of good quality aromatic cardamom at attractive prices may limit sharp fall. Shortage of quality produce from other sources is also likely to add to the export demand. In April-November, the exports of small and large cardamom surged to 3575 tonnes from 2500 tonnes on last year, according to data by the Spices Board of India.
Chilli contracts are expected to trade weak on lower export demand. Also higher production estimates may weigh on the price trend. As per market source, chilli output from both Andhra Pradesh and Madhya Pradesh is seen higher this year. Chilli arrivals in Guntur stood at 35000 bags, where the price was quoted at Rs.7000 per 100kg. Chilli exports during April-November 2011, fell 23.6 percent on year to 132500 tonnes, but rose 20.2 percent in rupee terms to 12.66 bln rupees as the prices touched record high in April. However, rainfall in Andhra Pradesh may delay harvesting activities and is likely to limit sharp fall in prices.
Coriander futures hit upper limit on short covering and buying at lower levels after falling sharply in the last few sessions. Price of coriander in Kota was quoted at Rs.4100 per 100kg. Total arrivals in Rajasthan stood at 4300 bags. The prices are expected to slide down owing to good production coupled with lackluster demand. Exports of the spice in April-November were 35000 tonnes, down 41 percent compared to same period previous year, as per Spices Board India data. Meanwhile, fears of crop damage because of foggy weather in major production areas may limit the price fall.
Source : moneycontrol.com