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Spices Update

posted Jun 4, 2011, 10:04 AM by NAVYUG Info

Jeera prices have been increasing with falling arrivals amidst some rise in demand in mandis. There are possibilities of some export queries in coming days—as per traders. This could support rates to some extent. Short term trend is likely to be volatile depending on the weather factor and reports on the export front. Apprehensions of lower production, lower stocks and rise in domestic demand are likely to support the prices later on. Traders expect trading activities to rise significantly in coming weeks as possibilities of exports are picking up. Demand from US and European countries likely to shift more towards India in coming weeks due to low stocks in the International markets. Export demand from South-East Asian countries is there. Arrivals of the new crop from Turkey and Syria expected to start from mid-June onwards. The amount of those crops and their rate would be important for the Indian market trend. Latest reports from Spice Board of India indicates the estimated exports of Spices for the period April-March 2010-11 have risen by 5% from 502,750 MT in 2009-10 to 525,750 MT in 2010-11. Jeera exports fell by 35% from 49,750 MT to 32,500 MT during the same period.

Turmeric rates failed to sustain the higher levels on weak fundamentals. Reports of higher production aspects and weak exports kept pressurizing the market rates. However, export demand from Gulf countries supported the prices to some extent. Trend likely to remain volatile as traders expect rates have fallen to significantly low levels and expect demand to pick up in coming weeks. Low stock levels are also supporting the prices to some extent. But arrival of new crop in coming weeks could have some bearish impact on the market sentiments. Good rains in the growing areas of AP and Karnataka raised possibilities of a better crop this year. With sowing area in these 2 states expected to rise, it can pressurize the prices to some extent. Traders expect production to range between 65-70 lakh bags vs ~48 lakh bags last year (1 bag = 70-75 kg) There are expectations of farmers switching to this crop this year as the returns last year had been good. This is expected to improve the crop production aspects. Latest reports from Spice Board of India indicates the expected Turmeric exports for the period April-March 2010-11 have fallen by 3% to 49,250 MT in 2010-11 from 50,750 MT in 2009-10 same period