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India turmeric falls on new margin rule; pepper weak |
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Turmeric futures in India fell by more than 1 percent on Tuesday on imposition of additional margin by the exchange.
* India's National Commodity Derivatives Exchange (NCDEX) has imposed a 20 percent additional margin on the long and short side of turmeric contracts, effective Friday.
* The margin will be applicable to all current and yet-to-be-launched contracts of turmeric.
* "Overall fundamentals are bullish. However, NCDEX's circular has created a panic selling. We expect it to rise again," said Shikha Mittal, analyst with Karvy Comtrade.
* Turmeric acreage in India, the world's biggest producer and exporter of the yellow spice, is likely to fall 30 percent this season, reducing exports in 2013-14 even though total overseas sales are still expected to be above average.
* At 0854 GMT, the August contract on NCDEX was down 1.75 percent at 4,166 rupees per 100 kg.
* In the Nizamabad spot market, turmeric rose 23 rupees to 3,727 rupees per 100 kg.
PEPPER
Pepper futures fell on lower export demand though slack supplies and dwindling stocks limit the downtrend.
* The most-active July contract on the NCDEX was down 0.49 percent at 40,800 rupees per 100 kg.
* "Export demand is weak due to higher selling by Vietnam, which drag the prices down," Mittal said.
* Overseas sales have been poor because Indian-origin pepper is being offered at a premium compared to other suppliers.
* In Kochi, an important market in Kerala, spot pepper fell 70 rupees to 40,213 rupees on weak export enquiries.
JEERA
Indian jeera, or cumin seed, futures edged lower on expected fall in overseas demand from Gulf countries during the approaching ramadan festival.
* The July jeera contract on the NCDEX was trading down 0.82 percent to 13,537 rupees per 100 kg.
* "Most labours will go on leave during ramadan festival and the demand for jeera is expected to fall at that time," said Mittal from Karvy Comtrade.
* At Unjha, a key market in Gujarat, spot jeera fell 50 rupees to 13,996 rupees per 100 kg.
Source : in.reuters.com
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