MUMBAI (Commoditiescontrol) - Spot Turmeric was the top gainer in spices complex during the week ended Friday followed by Black Pepper and Jeera, whereas subdued demand against poor export demand weighed on prices of Coriander and Red Chilli.
Turmeric
Turmeric prices at the benchmark Nizamabad market rose 5.68% at Rs 7,654/100Kg during the week amid strong domestic buying support and bullish movement on futures.
The undertone in Turmeric has turned bullish after Postpone of AP Markfed Auction of Turmeric, which earlier was scheduled from August 2-4. AP Markfed earlier in mid-July informed that it is going to auction 9,000 metric tonnes (MT) of Turmeric, which was procured earlier from the spot market due to sharp fall in prices to support farmers. Turmeric prices in the spot market plunged sharply after the report of auction, which has forced federation to postpone the auction.
Turmeric turned positive also due to good export and domestic demand. The availability of good quality Turmeric in the country is said to be in scarcity due to uneven rainfall last season in producing belts, however production was better due to higher acreage dedicated by farmers for Turmeric.
According to trade sources, India turmeric production was stood higher at 65-67 lakh bags (70kg each) in marketing year 2017 (Jan-Dec) against 50 lakh bags. However carry over stocks from previous crop was lower at just 20 lakh bags against around 40 lakh bags in 2016, which took the total availability for 2017 at 85-87 lakh bags.
The market sentiments in Turmeric is positive due to concern over fall in acreage, particularly in Maharashtra and Erode (Tamil Nadu) due to scanty rainfall in producing regions. However production in key Andhra Pradesh and Telangana likely to be around more or less last year's level. Further ending stocks of Turmeric is expected to lower during start of new season in 2018, and with concern about fall in production the outlook for Turmeric seems positive in the long term.
Turmeric exports during the first two month (Apr-May) of FY 2017-18 rose 3.65% at 24,999.54 metric tonnes against 24,119.31 metric tonnes previous year. The top three buyers of Indian turmeric were Iran (3,380 MT), Bangladesh (2,575 MT) and UAE (2,175.86 MT).
Turmeric for September delivery this week edged higher by 5.31% at Rs 7,732/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX). The futures market is Rs 66/100kg contango with the spot markets at present, however the present difference is not very significant, but long players should be cautious in case contango widens in the coming sessions as futures prices will be costlier against spot market.
Black Pepper
Black Pepper futures rose 1.43% at Rs 49,500/100kg at the key Kochi market on tight availability of the material and reported sharp rise in the futures markets at the national exchanges. Sellers stayed away hoping further rise in the prices following the commencement of the demand season, trade sources said.
Unconfirmed rumors were in the air saying that the import duty on imports under SAFTA was being restructured by the authorities and that has led to the sharp rise in the prices on the national exchanges, they said.
Meanwhile, the strong rupee against dollar, trade sources claimed, would increase import of Pepper from Sri Lanka and South East Asian producing countries.
They said, according to a statistics reportedly issued by the Vietnam Pepper Association, India imported 7,355 tonnes of pepper from Vietnam during January-June 2017. Sri Lanka, which does not import pepper for domestic consumption, also has reportedly imported 2,819 tonnes of pepper during the period and a good chunk of it might have entered the Indian domestic market, they said.
Indian parity in the international market also rose to $8,000 a tonne cf for Europe and $8,250 a tonne cf for USA following the strengthening of the rupee against the dollar, they said.
Black pepper September futures gained 3.55% at Rs 49,215/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX). The contract during the week moved between Rs 47,300 to Rs 49,400.
Jeera
Jeera prices moved up a tad at Rs 19,460/100kg in Unjha market of Gujarat. Though prices was in positive territory during the week, but demand in the spot market has slowed at the higher level amid poor export demand.
Export demand for Cumin seed was said to be sluggish in the recent months. It was also reflected in export data released by commence ministry for the fist couple month of FY 2017-18.
The pace of export was slow due to availability of Jeera in the international market from producing nations such as Syria, Turkey and China, he said.
India Jeera export during April-May 2017 plunged 22.05% at 27,379.80 metric tonnes versus 35,123.86 metric tonnes same period a year ago. The major buyers were Vietnam (5,898), UAE (3,134.64), Bangladesh (3,345), USA (1,528.96) and Brazil (1,310).
Jeera export in month of April was recorded tad up at 14,278.65 metric tonnes, but it fell 37.77% at 13,101.15 metric tonnes versus 21,053.83 corresponding period last year.
India cumin seed export during FY 2016-17 was higher at 122,992.91 metric tonnes compared with 94,352.47 metric tonnes previous year.
Further the lower export from the country was also attributed to higher price compared with last year. The average price of Jeera in May 2017 was stood at Rs 18,077/100kg against 16,660 corresponding period a year ago, while average rates in June 2017 was up at Rs 18,447 versus 17,267 a year ago, according to spot market data compiled by commoditiescontrol.
India cumin seed export during previous FY 2016-17 surged 30.35% at 122,992.91 metric tonnes against 94,351.47 metric tonnes in FY 2015-16.
NCDEX Jeera for September delivery rose 1.31% at Rs 19,675/100kg. Jeera prices may trade positive next due to increase in volume and open interest. Further domestic demand is expected to increase ahead amid festival season.
Coriander
Coriander prices continued to trade bearish in the spot market with prices plunged as much as 3.56% at Rs 5,106/100kg at Kota market of Rajasthan. Domestic demand for Coriander is average as buyers are not in mood to procure the commodity in bulk quantity due to cheaper availability in the international market. With appreciating India currency the import of Coriander will become even more competitive, which is likely to hurt domestic market very badly.
Ukrainian sellers a week earlier were offering their produce at $400 per tonne in FOB, which is much cheaper than domestic produce. Stocks of Coriander in the country is ample, which is also a negative factor, however sharp fall in prices unlikely as any sharp fall in prices will restrict supply in the spot markets as they had procured it higher rates.
The most active NCDEX September futures dropped this week by 3.64% at Rs 4,833/100kg. Coriander prices next week may trade negative due to sluggish demand. Rising open interest with volume along with receding prices in an indication that negative tone in the market may continue.
Red Chilli
Red chilli prices in Guntur fell 2.11% at Rs 5,457/100kg due to poor off take against steady supply. Demand is though slow at present, but is likely to increase in the coming weeks ahead of festival season.
Domestic demand in the spot markets was average at present, however export inquiries was said to be good, mainly from China, said Kamal Jain, a Red chilli trader from Guntur.
There is good demand in Teja variety from overseas buyers, Jain added.
Red chilli prices is likely to trade around current lower range and fall is limited as stockists and farmers are unlikely to liquidate their stocks in case of fall in prices, said Jain.
According to Jain "Red chilli acreage this season in Andhra Pradesh and Telangana likely to decline as farmers have shifted to cotton crop. Red chilli prices in last 6-8 month declined sharply that has prompted farmers to look for better alternatives, such as cotton crop," he added.
Red chilli sowing in Andhra Pradesh, largest producer in the country, reached at 7,000 hectares against 16,000 of normal area sown same period a year ago, according to state agriculture department. However acreage in Telangana was higher at 4,000 hectares versus 2,000 hectares last year.
Red chilli arrivals in the country during March to July 2017 totaled at 74.92 lakh bags (35kg each), or 2.62 lakh tonnes at the benchmark Guntur market.
Red chilli production in the country during 2016-17 pegged by trade sources at just above 16 lakh tonnes against around 14 lakh tonnes a year ago.
India Red chilli export during the first couple month (April-May) of FY 2017-18 rose sharply 75.11% at 74,575.22 metric tonnes against 42,587.15 metric tonnes same period a year ago.
Vietnam was the among the top buyer with 32,381.44 metric tonnes, followed by 10,020.93 metric tonnes by Thailand, 6,919.58 metric tonnes by Sri Lanka.
India shipped 308,845.30 metric tonnes of red chilli in FY 2016-17, up 27.28% from 242,650 metric tonnes in FY 2015-16.
.png)
(By Commoditiescontrol Bureau; +91-22-40015533)
0 Comments 
Post Comment 
