Pepper posts gains, turmeric prices slip
Pepper prices have seen an upward movement during the week. The prices fell initially but firmed up on Monday.
By Agencies |
KOCHI, MUMBAI: Pepper prices have seen an upward movement during the week. The prices fell initially but firmed up on Monday. Futures rose on mainly on-short covering and fresh export orders, analysts said.
“There was some short covering after a sharp fall in prices,” said Alex Mathews, an analyst with Geojit Financial Services.
Some fresh export orders also came in as local prices have fallen below those of major exporting countries, said an analyst with Kotak Commodity Services.
Prices stood at Rs 141 per kg on November 5. It fell to Rs 139 per kg during the middle of the week. However, on Monday it climbed back to Rs 141 per kg. Market sources were of the view that speculative demand was behind the price rise.
Northern markets were closed due to festival. In the international market Indian pepper continues to be expensive.
The futures price for December contract stood at Rs 141.73 per kg on November 5. On Monday it touched Rs 144.10 per kg. In Vietnam, prices were ruling at $3,800 per tonne and in Indonesia it was $3,750, while in India prices were ruling lower at $3,650, said Atit Shah, a Kochi-based trader.
Vietnam and Indonesia are two of the world’s largest pepper producers and exporters, and higher prices in those countries can boost Indian exports.
Meanwhile, turmeric futures showed a mixed trend on Monday with the near-month contract tracking a weak spot, while the far month rose on demand hopes and crop damage reports, analyst said. “Arrivals were stable but demand was very weak,” said Alimuhammed Lakdawala, an analyst at Anand Rathi Commodities.
In Nizamabad, a major trading hub, the spot price fell by Rs 9 to Rs 2,063 per 100 kg. Modest exchange warehouse stock and decreasing spot prices are pulling down near-month contract, said an analyst at a Delhi-based commodity brokerage. He said the December contract rose on export demand hopes and fears that heavy rainfall in the southern state of Andhra Pradesh, the biggest producer, may have damaged crop there.
Stocks in National Commodity and Derivatives Exchange (NCDEX)-accredited warehouses stood at 2,310 tonnes.
According to trade estimates, India would produce 0.79-0.80 million tonnes this year, compared with 0.89 million tonnes in 2006-07, with a carry-forward stock of 0.1 million tonnes. Domestic demand is pegged around 0.7 million tonnes, while it exports around 40,000-50,000 tonnes.
“There was some short covering after a sharp fall in prices,” said Alex Mathews, an analyst with Geojit Financial Services.
Some fresh export orders also came in as local prices have fallen below those of major exporting countries, said an analyst with Kotak Commodity Services.
Prices stood at Rs 141 per kg on November 5. It fell to Rs 139 per kg during the middle of the week. However, on Monday it climbed back to Rs 141 per kg. Market sources were of the view that speculative demand was behind the price rise.
Northern markets were closed due to festival. In the international market Indian pepper continues to be expensive.
The futures price for December contract stood at Rs 141.73 per kg on November 5. On Monday it touched Rs 144.10 per kg. In Vietnam, prices were ruling at $3,800 per tonne and in Indonesia it was $3,750, while in India prices were ruling lower at $3,650, said Atit Shah, a Kochi-based trader.
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Vietnam and Indonesia are two of the world’s largest pepper producers and exporters, and higher prices in those countries can boost Indian exports.
Meanwhile, turmeric futures showed a mixed trend on Monday with the near-month contract tracking a weak spot, while the far month rose on demand hopes and crop damage reports, analyst said. “Arrivals were stable but demand was very weak,” said Alimuhammed Lakdawala, an analyst at Anand Rathi Commodities.
In Nizamabad, a major trading hub, the spot price fell by Rs 9 to Rs 2,063 per 100 kg. Modest exchange warehouse stock and decreasing spot prices are pulling down near-month contract, said an analyst at a Delhi-based commodity brokerage. He said the December contract rose on export demand hopes and fears that heavy rainfall in the southern state of Andhra Pradesh, the biggest producer, may have damaged crop there.
Stocks in National Commodity and Derivatives Exchange (NCDEX)-accredited warehouses stood at 2,310 tonnes.
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Analysts said higher carry-over stock is weighing on sentiment. According to trade estimates, India would produce 0.79-0.80 million tonnes this year, compared with 0.89 million tonnes in 2006-07, with a carry-forward stock of 0.1 million tonnes. Domestic demand is pegged around 0.7 million tonnes, while it exports around 40,000-50,000 tonnes.
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Volume in turmeric futures stood at 15,960 tonnes. Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
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