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Spices continue upward march

posted May 23, 2010, 1:19 AM by Unknown user
Turmeric prices are still continuing their upward rally. Lower production, good exports and less stocks of turmeric with the stockists added fuel to the prices. Turmeric production in India in 2009- 2010 is around 3.36 lakh tonnes as compared to 2.94 lakh tonnes in the previous year. Stocks of turmeric in the beginning of the year were around 21,000 tonnes. Further, arrivals in the domestic have started declining providing support to the prices. Turmeric arrivals in the Erode mandis have reduced to around 5,000 bags as compared to 10,000 bags in the beginning of the week. Arrivals at Nizamabad are steady around 2000 bags. Farmers and stockists are hoarding the stocks of turmeric in anticipation of further rise in the prices. According to Spices Board, exports of turmeric from April 2009 to February 2010 were 46,000 tonnes as compared to 48,850 tonnes in the same period previous year. Thus prices are expected to climb further. 

Jeera prices traded in range bound manner in the beginning of April but strengthened at the end of the month due to report of rains in jeera growing areas of Syria and Turkey the other major producers. Rains will hamper the standing crop. Prices are currently in the correction mode due to harvesting in Syria and Turkey and sluggish overseas and domestic demand. Production of Jeera in Syria is expected to be around 20,000 tonnes and 15,000 tonnes each in Turkey and Iran. Syrian crop is being harvested and the price quotes are around $2,500/tonne. Indian jeera is quoting in the range of $2400-$2450/tonne. Harvesting of jeera in Turkey will commence from second week of June. Production of jeera in India is around 1.37 lakh tonnes in 2009-2010 as compared to 1.21 lakh tones in the year 2008-2009. Carryover stocks are around 19,250 tonnes. Moving forward, prices may be range bound in near term followed by bullishness once the demand from international buyers pick up after Syrian and Turkish stocks are fully harvested.

Chilli markets at Guntur remained closed for summer and will open on 7th June as stated in earlier posts. However some arrivals are taking place, but of inferior quality. Markets are expected to open strong in June. 

Indian soymeal numbers are far from imporessive. India's soyameal exports in April have fallen by 50 per cent to Rs 95.99 crore compared to the same month last year due to slow pace in crushing and lesser arrivals of the soyabean in the market. In terms of volume too, soyameal exports fell in April by 31.45 per cent to 57,507 tonnes compared to the same month last year. India's soyameal exports in 2009-10 oil year is expected to decline by 22 per cent at 2.5 million tonnes against 3.2 million tonnes in 2008-09. However prices have corrected a lot and good interest is being seen at this low levels. But high world production levels should maintain the bearing outlook.

Maize demand from countries like Bangladesh has slackened a bit due to local crops in Bangladesh coming up. But steady shipments are taking place to South East Asian countries from Chennai, Kakinada and Kolkata somewhat. Also the pressure of local crops of Bangladesh would go away in a about a month. So prices seem to be in a neutral to bullish tendency.