NCDEX jeera edges higher on bargain buying

Last Updated : October 28, 2011 15:00

MUMBAI (Commodity Online): Jeera futures rose Friday on bargain buying by the traders on the back of firm demand in the local markets for the ongoing festive seasons.

At NCDEX jeera November contract is trading at Rs.14700 per quintal, higher by 1.52 per cent on 14:55 IST against the previous close.

In the early session the contract traded at a range of Rs.14419-14846 per quintal. Open interest of the contract is 16692 lots and volume traded is 4044 lots for the time being.

No new Fundamental reports were there as Unjha mandi remained closed for Festival this week, Jeera traded with high volatility.

Latest reports from Spice Board of India indicates the estimated exports of Spices for the period April-August 2011 have fallen by 23% from 255,100 MT in 2010 to 195,500 MT in 2011. Jeera exports fell by 39% from 15,700 MT to 9,500 MT during the same period.

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Pepper likely to move further higher on active buying

Last Updated : October 28, 2011 10:46MUMBAI(Commodity Online):Pepper rates recovered moderately from the lower levels as low level buying activities were reported in the mandis.

Traders expect fall in rates over last few days have been significant and an expected rise in exports in coming weeks could support the price further.

Slight improved production prospects from Kerala and Karnataka and arrival of the new crop could limit the uptrend.

Overall Fundamentals remained firm however from lower stocks and lower production amidst expected rise in export demand n coming weeks

Exports and domestic demand from North India remained good. Traders expect that with low stocks, lower global production and rising export demand, trend is likely to remain Bullish for the commodity from a medium to long term point of view.

Strengthening in the Dollar vs Re rates could have beneficial impact on the export front. But short term correction possibilities remain.

Traders expect that good demand and a firm trend in Vietnam could support the rates further. Good demand from Gulf countries sup-porting the rates. Demand from China and West Asia also reported.

IPC has predicted 2011 crop to be lower by 2% at 309,952 MT. Carryforward stocks are expected to decline marginally to 94,582 MT vs 95,442 MT. Global exports have declined by 11% to 237,650 MT. Indian production expected to decline to 48,000 MT.

Vietnam is having low stocks as per reports. The production there too is expected to fall this year as per some estimates. Brazil and Indonesian crop expected to be lower. Low carryover stock in Brazil and Indonesia is likely to raise exports here in coming months.

Reports of farmers shifting to other more profitable crops have affected the production aspects for the crop in India.

Latest reports from Spice Board of India indicates the likely Pepper exports for the period April-August 2011 have risen by 12% to 8.750 MT in 2011 from 7,800 MT in 2010 same period.

Courtesy: Religare Commodities

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