Turmeric likely to decline on higher arrivals

Last Updated : November 03, 2011 10:11

MUMBAI (Commodity Online): Turmeric rates fell in the Spot and the futures markets as lower demand amidst moderate arrivals kept pressurizing the market sentiments. Prospects of demand rising in coming weeks could limit the downtrend however.

Traders expect the trend to remain volatile in the short term as improved production prospects and higher stocks could keep the prices under check to some extent.

Rains in growing areas in Andhra Pradesh and other nearby states have been pressurizing prices in apprehension of better crop prospects. Improved arrivals in AP have kept further pressure on the prices.

Good Monsoon reports in AP has reportedly keeping the sowing activities proper. The area sown would however depend on market rates and if falling trend continues, traders expect the sowing area may fall as farmers may shift to other lucrative crops like cotton, soybean etc.

The total production this year is expected to touch 75-85 lakh bags (1 bag-75kg) - higher than the 65-70 lakh bags in 2010-11. Higher acre-age from the high rates is stated the reason for the rise in expected production as per traders.

Good stocks and increased selling pressure along with weak demand in the mandis have kept trend weak for the commodity over the last few weeks. The sowing period is from June-August and harvesting begins in January.

Exports that had remained low are however expected to rise in coming weeks from Europe, US, West Asia and Japan.

Latest reports from Spice Board of India indicates the expected Turmeric exports for the period April-August 2011 have risen by 52% to 36,500 MT in 2011 from 24,000 MT in 2010 same period.

Courtesy: Religare Commodities

View the original article here

Turmeric likely to decline on higher arrivals

Last Updated : November 03, 2011 10:11

MUMBAI (Commodity Online): Turmeric rates fell in the Spot and the futures markets as lower demand amidst moderate arrivals kept pressurizing the market sentiments. Prospects of demand rising in coming weeks could limit the downtrend however.

Traders expect the trend to remain volatile in the short term as improved production prospects and higher stocks could keep the prices under check to some extent.

Rains in growing areas in Andhra Pradesh and other nearby states have been pressurizing prices in apprehension of better crop prospects. Improved arrivals in AP have kept further pressure on the prices.

Good Monsoon reports in AP has reportedly keeping the sowing activities proper. The area sown would however depend on market rates and if falling trend continues, traders expect the sowing area may fall as farmers may shift to other lucrative crops like cotton, soybean etc.

The total production this year is expected to touch 75-85 lakh bags (1 bag-75kg) - higher than the 65-70 lakh bags in 2010-11. Higher acre-age from the high rates is stated the reason for the rise in expected production as per traders.

Good stocks and increased selling pressure along with weak demand in the mandis have kept trend weak for the commodity over the last few weeks. The sowing period is from June-August and harvesting begins in January.

Exports that had remained low are however expected to rise in coming weeks from Europe, US, West Asia and Japan.

Latest reports from Spice Board of India indicates the expected Turmeric exports for the period April-August 2011 have risen by 52% to 36,500 MT in 2011 from 24,000 MT in 2010 same period.

Courtesy: Religare Commodities

View the original article here

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

View the original article here