Indian Turmeric Futures Rise Further Three Percent .

Indian yellow spice futures extended the gains for the sixth consecutive sessions on fresh buying lead by lower stocks. New arrivals are expected to reach the market from January onwards and prolonged rains in some parts of the growing places can delay the crop arrivals. Benchmark December turmeric contract on NCDEX jumped by three percent to the session high of Rs. 16,242 and the contract is currently trading higher at Rs. 16,180, up 2.56 percent from the last close. The open interest added 6.40 percent to 6,150 tonnes, indicating fresh buying and volume traded as of now stood at 2,700 tonnes.

Benchmark spot prices of Turmeric at Nizamabad and Erode were quoted at premium due to lower arrivals and better offtakes. Demand from the local stockiest and overseas buyers is expected to improve ahead of winter season.

Lower stocks of turmeric till the fresh arrivals expected in the month of February will keep the prices firm in the near month contract. Prices will also take cues from the demand from the overseas and domestic buyers.

Turmeric prices in the medium term (December end onwards) will depend on growth of the sown crop. Further, demand from the domestic and overseas buyers will also determine the price trend in the above period. In long term (January mid onwards) prices are likely to remain bearish due to better production estimates of turmeric in 2010-11.

It is expected that around 70 lakh bags would be the next year's production against a normal 45-50 lakh bags at national level as per trade sources.

As per the latest updates from the spices board of India, during April-October 2010, turmeric exports dipped 14 percent to 29,500 tonnes and export earnings surged by 81 percent to Rs. 41,382.05 lakh.

Source : indiainfoline.com