This weeks NCDEX Futures Tumbles

NCDEX Pepper Tumbles More Than 1%

Pepper futures tumbled further on weak sentiment. Pepper futures in the intraday are expected to trade sideways due to lackluster trades at the domestic market. Fresh enquires from the domestic buyers ahead of festivals might support prices in the short term (till August). However, as the prices of Indian origin are being quoted at higher levels overseas buyers might stay away from Indian market thereby restricting major upside in the prices.

Black Pepper for ready delivery in Kochi, closed Monday’s trading session (as on 8th August 2011) with negative note at Rs. 28,600, down by Rs. 100 over last close. Pepper arrivals in Kochi Mandi increased to 150 quintals on Monday as on 8th August 2011 from 100 quintals, meanwhile offtakes decreased to 150 quintals from 200 quintals as on Saturday.

Prices of Indian origin are quoting at higher levels of around $6,850-$6,875/tonne while Brazil and Indonesia are offering at lower rates. This is likely to restrict overseas buyers to India. Harvesting is progressing well in Brazil and Indonesia, this will also added some weakness in the pepper.

In today’s early trading session, pepper for the August delivery tumbled by 1.10% or Rs.317 to the session low of Rs. 28360 per 100 kg. The contract is currently hovering at Rs.28400 per 100 kg.

The next support is at Rs. 28162, Rs. 27930 and resistance is at Rs. 28610, Rs. 28800 per 100 kg.

NCDEX Turmeric plunges on subdued demand

Turmeric futures tumbled today on the back of sluggish demand from the physicalmarkets amid higher stocks.

At NCDEX Turmeric August contract is now trading at Rs.6288 per quintal, higher by Rs.234 or 3.59% against the previous close. In the morning session the contract traded at a range of Rs.6262-6452 per quintal. Open interest of the contract is 7005 lots as of now.

Low demand and reports of higher production and stocks in mandis are likely to pressurize the prices to some extent. There are expectations however of demand rising in coming weeks that could support the falling prices.

Sowing has started in the growing areas in Andhra Pradesh and the progress is reportedly satisfactory. Good Monsoon progress is also reportedly keeping the sowing activities proper. The area sown would however depend on the market rates and if the falling trend continues, traders expect the sowing area may fall as farmers may shift to other lucrative crops like cotton, soybean etc.

Jeera Slumps Nearly 4% On Weak Export Demand, Weak Spices Sector


Indian Jeera futures dropped further on long liquidation amid weak spices complex. The spices complex tumbled on weak global commodities on US debt worries. The NCDEX Jeera September contract ended the last session down by 2% at Rs. 15,483 after hitting the low of Rs. 15430 per 100 kg.

In today’s trading session, Jeera September delivery fell nearly 4% or Rs. 611 to the session low of Rs. 14,872 and currently hovering at Rs. 14,985, down Rs. 498 or 3.22% over the last close. The open interest dipped 0.53% to 17,856 tonnes.

The spot Jeera price traded in the range of Rs. 13,500-13,800 per quintal at Unjha Mandi, down by Rs. 200 per 100 kg. Best quality traded steady in the range of Rs. 15,000-16,000 per quintal. The total fresh arrivals surged to 4,000 bags from 6,000 bags last day (demand was reported around 4,000 bags against 6,500 bags last day).

The Jeera exports slumped by 46% to 5,750 tonnes while value dipped by 36% to Rs.7,560 lakh during April to June 2011. Forex revenue from exports of spices and spice products from India during April-June 2011 registered a rise of 21 % while the tonnage declined by 26 %.


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