NCDEX Pepper Rises, Support At Rs.37400-37800 Angle: April 19, 2012

Pepper prices in the intraday may trade sideways to down on account of  selling by the market participants. Expectation of fresh arrivals of pepper  from Malaysia will support bears in the market.   

Black Pepper NCDEX May Futures Rs/qtl
Support: 37400-37800
Resistance: 39100-39370


NCDEX Jeera Tumbles On Arrival Pressure

Jeera futures witnessed mixed trades throughout the day and settled  0.23% lower on Wednesday. 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 25,000 bags, 2000 bags lower than previous day while off-takes also increased by 2000 bags at  32,000 bags on  Wednesday. 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 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 Poor Domestic Demand

Spot prices of turmeric and futures were quoted at steady to slightly lower due to lacklustre demand from the domestic buyers and settled  0.29% and 0.12% lower respectively on Wednesday. Demand from the  overseas buyers also continues to remain dull.

Production, Arrivals And Exports 

Arrivals in Nizamabad and Erode mandi stood at 22,000 bags and  28,000 bags respectively on Wednesday. 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 lakhbags in 2010- 11. 

Erode is expected to produce 45 lakh bags of turmeric, a rise of  29% as compared to previous year.  

According to 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.