NCDEX Jeera Declines On Long Liquidation: April 24, 2012

After trading firm in the last few trading sessions, jeera futures witnessed long liquidation and settled 0.75% lower on Monday. 

Spot prices traced the futures and settled 0.81% lower yesterday. Carryover stocks of jeera are expected to be around 7-8 lakh bags as compared to 4-5 lakh bags in the last year. 

Production, Arrivals And Exports 

Unjha markets witnessed arrivals of 32,000 bags, higher by 8,000 bags as compared to previous day while off-takes stood at 30,000 bags on Monday. 

Production of jeera in 2011-12 is expected to be around 40 lakh bags as compared to 29 lakh bags in 2010-11, with each bag weighing 55 kgs (Source: Spot Market Traders). 

According to the Spices Board of India, exports of jeera during April 2011- January 2012 stood at 34,500 tonnes as compared to 22,450 tonnes in 2010-11, an increase of 54%. However, month-on-month exports of jeera witnessed a decline of 40%. 

NCDEX Turmeric Drops On Selling Pressure

Spot prices of turmeric traded steady due to lacklustre trades at the domestic market however, futures witnessed selling pressure due to long liquidation by the market participants. 

Demand from the overseas buyers have improved due to lower price quotes. 

Production, Arrivals And Exports 

Arrivals in Nizamabad and Erode mandi  stood at 12,000 bags and 15,000 bags, respectively on Monday. According to the market sources, harvesting of turmeric in Nizamabad is 75% complete, Erode 60%, Sangli 60% while centres of Duggiralla, Warangal and Cuddapah which started their harvesting late have completed 25% of their harvesting.

Average daily fresh arrivals in Nizamabad currently stand around 15,000 thousand bags while that in Duggiralla, Warangal and Cuddapah sum to 10,000 bags, Sangli 8,000 bags and the largest producing state is witnessing arrivals of  24,000 bags. Turmeric production  for the  year 2011-12 is  projected at historical high of 82 lakh bags (1 bag= 70 kgs) compared to 69 lakh bags in 2010-11. 

Erode is expected to produce 45 lakh bags of turmeric a rise of 29% as compared to previous year. According to the Spices Board of India, exports of turmeric during April 2011- December 2011 stood at 62,000 tonnes as compared to 37,400 tonnes in 2010-11, a rise of 66%. 

Targets set by the Spices Board have already been met till October 2011. Exports have touched new historical levels in 2011-12.