Turmeric To Bounce Back On Improved Buying: April 30, 2012

Intra-day turmeric prices are expected to bounce back owing to improved buying at lower levels. In the medium to long-term (May-June) prices are expected to track demand from the overseas and domestic buyers according to Angel Commodities.

However, overall trend is likely to remain weak in absence of fresh orders for export. Only hand-to-mouth buying is witnessing in small amount while exporters are not interested in buying at this movementa report by Karvy Commtrade Ltd said today.

Turmeric prices witnessed small recovery on previous losses during Saturday’s trading session. From opening of the session futures started trading slightly up on short covering. However, bearish sentiments amid reports of improved arrivals along with poor buying interest kept prices under pressure and futures prices ended the day on flat to slightly positive note.

In Tamil Nadu farmers has asked government to procure turmeric at a minimum support prices of Rs. 10,000 per quintal.

Arrivals in Nizamabad and Erode mandi stood at 15,000 bags and 8,000 bags respectively on Friday. 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.

Jeera Spot Arrivals Impressive, Futures On A Sideways Mode

Jeera spot prices remained lacklutre throughout the day and settled 0.28% higher. Demand from the local stockists and overseas buyers are present owing to cheaper rates. Carryover stocks of jeera are expected to be around 7-8 lakh bags as compared to 4-5 lakh bags in the last year report by Angel Commodities said today.

Jeera futures prices are projected to recover on lower level buying as towards onwards spot market of Unjha is expected to resume its full trade activity. Good export demand for Indian jeera is likely to support prises at lower levels as per Karvy Commtrade Ltd.

In the medium to long-term (May - June 2012) prices are likely to remain weak owing to bumper production this season. Prices will also take cues from the progress of sowing of jeera in Syria and Turkey, the other major producers of the spice.

Unjha markets witnessed arrivals of 23,000 bags, higher by 3,000 bags as compared to previous day while off-takes stood at 22,000 bags on Saturday. Production of jeera in 2011-12 is expected to be around 40 lakh bags as compared to 29 lakh bags in 2010-11.

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%.