NCDEX Jeera Trades Higher On Short Covering: April 23, 2012

Peak arrivals in the domestic market amidst demand from the overseas buyers led prices to remain rangebound throughout the day and settled 0.46% lower w-o-w. Futures, however, witnessed a bounce back from the support levels and settled 2.46% higher w-o-w.

Carryover stocks of jeera is 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 24,000 bags, lower by 4,000 bags as compared to previous day while off-takes stood at 24,000 bags on Saturday. 

Production of jeera in 2011-12 is expected to be around 35 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 Edges Higher On Rising Spot Demand

Spot prices of turmeric traded steady due to lacklustre trades at the domestic market however, futures witnessed a bounce back from the support levels and settled 7.65% higher w-o-w. Demand from the overseas buyers have improved due to lower price quotes. 

Production, Arrivals And Exports 

Arrivals in Nizamabad and Erode mandi have reduced to 8,000 bags  and 18,000 bags respectively in the last two days. 

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, 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.