Thursday, June 30, 2011
Exports of black pepper may rise on low prices
Black pepper exporters are likely to benefit in the coming days, as local prices of the commodity are on par with the international ones. Domestic prices softened by $350-400 a tonne and were at $6,350 a tonne. This has attracted overseas buyers and is likely to increase exports.
Vietnam offers Asta grade pepper at $6,250 a tonne, since a majority of its crop (around 72,000 tonnes) has been shipped. So, India might have the chance to fill in. According to exporters, India is now having a ‘reasonable price’ compared with pepper from other origins. For July shipments, Indonesia quotes $6,650 and the indicative price of Brazil is $6,300 a tonne.
Futures counters, which were trading at a hefty premium, crashed 10 per cent in the last four trading sessions. India was no way near the Vietnam counters till last week. Although futures crashed by $700 a tonne, the fall in spot was only $250. India, which was cut off from the rest of the origins, is slowly coming in line but exporters are not sure for how long it will last.
The Indian Mg-1 Asta quality on FoB-basis Kochi for June-July shipments is available at $6,350 a tonne and this looks interesting for overseas buyers, who have been neglecting India for the last three-four months.
There have been rumours about the rejection of Indian and Vietnamese pepper in many countries, especially in the US. These were used by some speculators to pull down Indian futures.
The crop in Indonesia this year will be low, according to various reports, and their Asta grade is the most expensive pepper, with a price tag of $6,650 a tonne.
Source: http://www.business-standard.com/india/news/exportsblack-pepper-may-riselow-prices/441102/
Turmeric likely to move further higher
MUMBAI (Commodity Online): Low level buying activities were noted in the Spot and the Futures market as Turmeric rates recovered moderately. But reports of rains in growing areas in Andhra Pradesh kept sentiments down.
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.
The present 2010-11 crop is expected higher at 65-70 lakh bags vs 48 lakh bags the earlier year.
Good stocks and increased selling pressure along with weak demand in the mandis have kept trend weak for the commodity over the last few weeks. The sowing period is from June-August and harvesting begins in January.
Exports that had remained low are however expected to rise in coming weeks from Europe, US, West Asia and Japan. That could support the falling prices to some extent.
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.
Courtesy: Religare Commodities
Pepper futures gain 0.79 pc on fresh buying
New Delhi, Jun 30 (PTI) Pepper prices rose by 0.79 per cent to Rs 27,500 per quintal in futures trade today on emergence of buying by traders following improved demand in spot markets.
At the National Commodity and Derivatives Exchange, pepper for delivery in July rose by Rs 216, or 0.79 per cent, to Rs 27,500 per quintal, with an open interest of 7,875 lots.
Likewise, the spice for delivery in August moved up by Rs 160, or 0.58 per cent, to Rs 27,860 per quintal, with an open interest of 2,859 lots.
Market analysts said fresh buying by traders on improved demand in the spot market mainly pushed up pepper futures prices.
Source: http://in.news.yahoo.com/pepper-futures-gain-0-79-pc-fresh-buying-075400485.html
NCDEX Coriander edges higher on low arrivals
MUMBAI (Commodity Online): Coriander futures prices gained almost 1% today in the wake of weak arrivals in major mandies.
As per market sources, the major mandi of coriander , Kota mandi has reported the daily arrivals of 2000 ( I bag = 40 kgs ) against 2500 bags that were reported last day.
While the spot prices of coriander Badami and Eagle quality were trading around Rs 3700 and Rs 4100 per quintal respectively, up Rs 100 per quintal from the previous day.
Similarly, the NCDEX July futures augmented by almost Rs 42 per quintal to trade at Rs 4182 per quintal today.
Monday, May 30, 2011
Spices export touch an-all-time-high in 2010-11
KOCHI: Spice Board today said that the export of spices from India during 2010-11 has registered an-all-time-high both in quantity and value, surpassing the export target of 465,000 tonnes valued Rs 5,100 crore for the financial year 2010-11.
During 2010-11, a total of 525,750 tonnes of spices and spice products valued at Rs 6,840.71 crore (USD 1,502.85 million) were exported, as against 502,750 tonnes valued at Rs 5,560.50 crore (USD 1,173.75 million) in 2009-10, Spices Board Chairman V J Kurian told reporters.
This is an increase of five percent in volume and 23 percent in rupee terms of value. In dollar terms the increase was 28 per cent, he said.
The Board aims to increase the spices export to 3 billion by 2017 and 10 billion by 2025, Kurian added.
He informed that during 2010-11, the export of chilli, ginger, fennel, garlic and other spices including asafoetida and tamarind has increased both in volume and value as compared to 2009-10.
Additionally, the export of value added products including spice oils and oleoresin and curry power/paste has increased both in volume and value as compared to 2009-10.
However, in the case of pepper, cardamom (large), turmeric, nutmeg and mace and mint products the increase is in terms of value only, he said.
Other spices like cardamom (small), coriander, cumin, celergy, fenugreek and other seeds have decreased both in terms of volume and value as compared to previous year.
During 2010-11, a total quantity of 18,850 tonnes of pepper valued at Rs 383.19 crore was exported as against 19,750 tonnes valued at Rs 313.93 crore last year, registering an increase of 22 per cent in value.
The unit value of pepper has increased from Rs 158.95 per kg in 2009-10 to Rs 203.82 per kg 2010-11, he said.
A total quantity of 1,175 tonnes of cardamom (small) valued at Rs 132.16 crore, was exported in 2010-11, as against 1,975 tonnes valued at Rs 165.70 crore last year.
The unit value of cardamom (small) increased from Rs 839 per kg in 2009-10 to Rs 1,124.79 per kg in 2010-11.
During the said financial year chilli export from India registered an all time high in both volume and value with exports of 2,40,000 tonnes of chilli valued at Rs 1,535.54 crore as against 2,04,000 tonnes valued at Rs 1,291.73 crore last year, registering an increase of 18 per cent in quantity and 19 percent in value, he said.
Pepper declines on weak domestic demand
Lacklustre trades at the domestic mandi led spot prices of pepper and futures to trade 2.65% and 4.45% lower w-w. Reports of commencement of fresh arrivals from Indonesia and expectations that the prices in the international market of major origins particularly Vietnam and Indonesia might be quoted at lower rates will pressurize prices.
In the month of April 2011 pepper prices in terms of fob highest rise was witnessed in Vietnam and Brazil origins. Prices rose by 22% and 21% respectively while that of India and Lampung it increased by 15% each, Malaysia by 13% and Srilanka by 4%.
Exports from the major countries
According to Spices Board of India exports of pepper from India during April 2010- February 2011 stood at 16,600 tonnes as compared to 18,425 tonnes in 2009-10, decline of 10%.
According to International Pepper Community (IPC) exports of black pepper from Indonesia during January to April 2011stood at 10,821 Mt (7025), increase of 54% as compared to previous year. Exports of Black pepper from Vietnam during January to March 2011stood at 25,000 MT, decline of 10% as compared to previous year.
According to General Statistics Office of Vietnam, the country has exported around 42,000 tonnes of Pepper during January to April 2011.
Production and Arrivals
Arrivals of pepper in the domestic mandi are in the range of 16-25 MT while are in the range of 15-20 Mt since couple of weeks.
Production of pepper in India in 2010-11 is projected to be 48 thousand tonnes (according to the Spices Board) as compared to 50 thousand tonnes last year. However, there are expectations that this estimate would be lowered further on account of the disease attacks and erratic rainfall in the major growing areas particularly Kerala and Karnataka.
According to International Pepper Community (IPC) global output of Pepper for 2011 is expected to decline by 6,500 tonnes to 3.10 lakh tonnes. Vietnam production of the spice is expected to be same as that of previous year to 1.10 lakh tonnes. Pepper production in Brazil stood around 27,000 tonnes in 2010-11 as compared to 35,000 tonnes the previous year.
Outlook
Pepper prices are likely to trade sideways to down due to lackluster trades at the domestic mandis. In the short term (till mid of June) prices might be pressurized owing to fresh arrivals of pepper from Indonesia. Domestic prices will also take cues from pepper prices of Vietnam in the international market.
In the medium to long term (June end onwards), price trend will depend on pepper production in Indonesia and Brazil and demand from the overseas and domestic buyers.
Courtesy: Angel Commodities
Turmeric tumbles on higher arrivals
Turmeric futures declined 8.40 % w-w owing to weak demand and improved arrivals at the other mandis. Spot Nizamabad mandi will reopen today (30th May 2011).
Turmeric stocks in the NCDEX warehouse are at 1354 MT as on 20th May 2011.
Production, Arrivals and Exports
Arrivals in Erode mandi stood at 8,000 bags on Friday lower by 2000 bags as compared to previous day.
Turmeric production in the year 2010-11 is estimated at 69 lakh bags (1 bag= 70 kgs) compared to 48 lakh bags during the previous year. According to Spices Board of India exports of Turmeric from India during April 2010- February 2011 stood at 42,500 tonnes as compared to 46,575 tonnes in 2009-10, a decline of 9%.
Outlook
Turmeric prices in the intraday will trade sideways to down due to lacklustre demand from local stockists.
Price trend in the short term (till mid of June) are likely to depend on the arrivals and demand from the overseas and domestic buyers.
In the medium to long term (June end onwards) turmeric prices will take cues from the turmeric stocks at the domestic market and onset of monsoon in the major growing regions.
Courtesy: Angel Commodities
NCDEX Coriander gains on weak arrivals
MUMBAI (Commodity Online): Coriander prices gained more than 1% today in the wake of weak arrivals in major mandies.
As per market sources , the major mandi of coriander , Kota mandi has reported the daily arrivals of 200 ( I bag = 40 kgs ) against 3000 bags that were reported last day.
While the spot prices of coriander Badami and Eagle quality were trading around Rs 4050 and Rs 4300 per quintal respectively, up Rs 150 per quintal from the previous day.
Similarly, the NCDEX June futures augmented by almost Rs 52 per quintal to settle at Rs 4535 per quintal today.
Sunday, May 22, 2011
Commodity Trends: Pepper uptrend continues, wheat also gains
Pepper continues to steal the show in agri-commodities with uptrend in prices continuing this week on limited supply from fresh crop. Turmeric futures regained at the end of the week as traders chose to cover short positions after the recent fall. Global wheat prices gained on USDA crop forecasts which estimates fall in output due to drought conditions.
Pepper
Pepper futures rose this week on the back of limited supply from the fresh crop and on depleted stocks with other major producing countries. Lower stocks with other major producing countries also supported buying. Vietnam is the largest pepper producing country in the world.
At Kochi on Friday pepper rose 207 rupees to 29,540 rupees per 100 kg. The most active June futures contract at National Commodity and Derivatives Exchange (NCDEX) closed at Rs.30391 per quintal, higher by 0.59 per cent. July contract opened this week at Rs.30300 per 100 Kg and closed at Rs.30690 per quintal, up by 0.36 per cent.
During April-February 2010-11, a total quantity of 16,600 MT of pepper valued Rs.334.62 crores was exported as against 18,425 MT valued Rs.293.00 crores of last year. The unit value of pepper has increased from Rs.159.02 per kg in 2009-10 to Rs.201.58 per kg during 2010-11.
As per the latest release from the Spices Board of India, Exports of spices and spices products from India have registered an increase of four per cent in volume and 19 per cent in terms of value during April-February 2010-11, as per the latest release from the Spices Board of India. In dollar terms, the rise in exports is 24 per cent.
According to IPC’s projection, pepper output in India is estimated near 48000 tons compared with 50,000 in the previous year.
Chana
Chana continued uptrend this week on firm demand from the millers and on reduced arrivals from the market.
In Delhi on Friday chana prices rose 39 rupees to 2,405 rupees per 100 kg. At NCDEX June delivery contract opened at Rs 2455 per 10 MT and closed at Rs 2512, higher by 2.32 % whereas Chana July contract opened at Rs.2525 and ended at Rs.2590, up by 2.57%.
According to the report released by the government of New South Wales (Australia) acreage under chickpeas during 2011-12 is forecasted to be lower.
India's weather office sees on schedule monsoon retreat India’s June-September monsoon rains are expected to withdraw on schedule, the chief of the weather office said , unlike last year when late end-season rains hit Kharif Pulses output and delayed Rabi sowing.
This year India is not expected to witness late withdrawal of rains unlike last year which was an abnormal one. There were heavy rains in Augusts September and withdrawal too was late, according to general of state-run India Meteorological Department.
A timely withdrawal of the monsoon, which delivers more than 70 percent of annual rainfall, will boost pulses output.
Soybean
Soybean gained this week tracking firm global cues and on falling arrivals in the physical market. Rising oil meal exports also supported the gain.
In global markets also soybean rose on bets that U.S. planting delays will persist because of more rain next week in the Midwest. Bad weather in the U.S is supporting the global oilseed market. Excessive wet weather and flooding in the eastern U.S. Midwest is delaying corn and soybean plantings.
On Friday, soybean futures for July delivery rose 0.75 cent to settle at $13.8025 a bushel on the CBOT. Prices were up 3.8 percent this week. The oilseed has climbed 46 percent in the past year on record Chinese purchases.
On Friday, in the Indore spot market, soybean eased by 6 rupees to 2,387 rupees per 100 kg. At Sri Ganganagar in Rajasthan, rapeseed rose by 28 rupees to 2,765 rupees per 100 kg.
In futures market, NCDEX June soybean prices gained from Rs.2390 to Rs 2401, an increase of 0.46 per cent while July Soybean prices settled down by 0.16 % from Rs 2434 to Rs.2430. June soy oil prices rose from Rs 633.90 to Rs 641.35 per 10 MT, higher by 1.17.
The soy meal exports during April 2011 have declined which might limit the gains. However, the USDA crop planting report has revealed the corn planting has slowed down across the central and western Corn Belt.
Turmeric
Turmeric futures regained at the end of the week as traders chose to cover short positions after the recent fall. In the mid week turmeric fell due to rising supplies from the new season crop and weak demand.
In Erode spot market also turmeric rose this weekend. Turmeric had decreased steeply by about Rs 1,700 a quintal in the last few days. The sale of both varieties of turmeric was also encouraging. There would be no major increase for the commodity in near future, but there would be a price fluctuation from Rs 200 to Rs 500 a quintal.
At the Erode Turmeric Merchants Association, the finger variety was sold at Rs 6,174-8,161 a quintal and the root variety, Rs 6,204-7,289 on Friday.
The most active June futures contract at National Commodity and Derivatives Exchange (NCDEX) closed at Rs.8212 per quintal, a decline of 2.53 per cent. July contract opened this week at Rs.8422 per 100 Kg and closed at Rs.8180 per quintal, down by 2.87 per cent.
Turmeric production for this year has been estimated higher because of increase in the cultivation area. Turmeric production in the year 2010-11 is estimated at 69 lakh bags (1 bag= 70 Kgs) compared to 48 lakh bags during the previous year.
According to India’s Spices Board, exports of Turmeric from India during April 2010- February 2011 stood at 42,500 tonnes as compared to 46,575 tonnes in 2009-10, a decline of 9%.
Wheat
Wheat futures fell this week in global and domestic markets. Wheat fell at the weekend in CBOT as drought cut output in Russia and eroded crops in the U.S. Great Plains.
On Friday wheat futures for July delivery fell 5.5 cents, or 0.7 percent, to $8.065 a bushel in Chicago. This week, prices were up 11 percent.
Drought conditions have expanded across Kansas and are threatening the state’s winter-wheat crop, the largest in the U.S., according to the National Drought Mitigation Center.
As of May 15, 55 percent of winter wheat in Kansas was rated poor or very poor by the U.S. Department of Agriculture. The National Weather Service estimates rainfall in the past 30 days was less than half of normal in much of those three states.
Kansas, Texas and Oklahoma produced 608.4 million bushels of wheat last year, or 28 percent of the total U.S. supply, according to the USDA. This year, the USDA expects production to drop 63 percent in Texas, 38 percent in Oklahoma and 27 percent in Kansas, compared with 2010.
In India, at NCDEX June delivery contract opened at Rs 1233.80 per 10 MT and closed at Rs 1226, fell by 0.63 % whereas Wheat July contract opened at Rs.1259 and ended at Rs.1246.80, down by 0.96%.
The International Grains Council lowered last month its outlook on global wheat production in the 2011-2012 season by 1 million tons to 672 million metric tons, matching global demand, because of "less than ideal conditions for some crops" in the U.S., the European Union and China. Further losses to the crop may cause production to lag behind demand for a second straight year, draining inventories.
Chilli, turmeric weaken on subdued demand
NEW DELHI, MAY 21:
Red chilli and turmeric prices fell by up to Rs 200 per quintal in the national capital today due to subdued demand from retailers and stockists amid adequate stocks.
Also, weak futures market trend and increased arrivals from the producing belts also put pressure on the prices.
Red chilli and turmeric prices declined by up to Rs 200 to settle at Rs 9,000-13,000 and Rs 10,500-15,500 per quintal, respectively.
Market analysts said subdued demand from retailers and stockists against adequate stocks mainly led to the fall in chilli and turmeric prices at the wholesale kirana market here.
Following are the quotations in Rs per quintal:
Ajwain 17,500-23,000, black pepper common 28,500-28,700, betelnut (kg) 110-120, cardamom brown-Jhundiwali (kg) 980-1,000 and cardamom brown-Kanchicut (kg) 1,100-1,250.
Cardamom small (kg): Chitridar 720-740, cardamom (colour robin) 700-740, cardamom bold 710-740, cardamom extra (bold) 980-1,040 and cloves (kg) 520-590.
Source: http://www.thehindubusinessline.com/markets/commodities/article2037656.ece
Taiwan to increase garlic exports to cut domestic oversupply
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Hsu Han-ching, deputy director of the agency, said as garlic farmers are currently suffering from a production glut, the agency will try to increase exports, adjust the local garlic supply, and help local garlic growers alleviate the financial impact.
According to Hsu, the output for every hectare of farmland used to grow garlic is expected to hit 11,702 kilograms this year, up almost 40 percent from the level recorded a year earlier.
As local garlic is very competitive in terms of quality and pricing in the global markets, the agency has successfully auctioned off 5,851 metric tons of garlic so far this year, Hsu said.
More than 4,000 metric tons will be put up for sale to foreign buyers in upcoming auctions.
Due to high inventories in the local market, Hsu said, the agency will meet with garlic farmers and representatives from the Yunlin County government’s agriculture division next week to figure out how to sell more of the products overseas.
Yunlin County is a major garlic growing region in Taiwan.
Hsu said the agency will also come up with campaigns to encourage more garlic consumption in the domestic market.
Source: http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aALL&ID=201105210015
Turmeric settles higher on rising export demand
Turmeric yesterday we have seen that market has moved 0.37% on lower level buying amid anticipation of exports rising in the coming weeks.
With the recent fall in the demand, farmers are ready to sell at lower prices as they need money for repaying their loans taken from local money lenders. However, stockiest are still not going for bulk buying due to higher production estimates which is limiting the overall movement at sot market.
This year total turmeric production is estimated around 65 lakh bags against 46-48 lakh bags last year. In Nizamabad, a major spot market in AP, the price ended at 8445.85 rupees gained by 11.1 rupees. Market has opened at 8100 & made a low of 8040 versus the day high of 8232.
The total volume for the day was at 6570 lots and the open interest was at 8970.Support for turmeric is at 8016 below that could see a test of 7932. Resistance is now seen at 8208 above that could see a resistance of 8316.
Trading Ideas:
Turmeric trading range is 7932-8316.
Turmeric gained on lower level buying amid anticipation of exports rising in the coming weeks
Turmeric is having resistance at 8208 and support at 8016 level.
NCDEX accredited warehouses turmeric stocks rose by 20 tonnes to 885 tonnes.
In Nizamabad, a major spot market in AP, the price ended at 8445.85 rupees gained by 11.1 rupees.
Courtesy: Kedia Commodities
NCDEX Pepper edges higher on export demand
MUMBAI (Commodity Online): Pepper futures traded up on Friday due to fresh buying by the traders and on rising demand from the overseas market.
At NCDEX Pepper June contract is currently trading at Rs.30386 per 100 Kg, higher by 1.37 per cent against the previous close. In the earlier sessions the contract traded at a range of Rs.29870-30770 per 100 Kg. Open interest of the contract is 15223 lots as of now.
Restricted supplies from producing regions and firming trend in futures trade, also supported the rise in prices. Black pepper prices rose by Rs 200 to settle at Rs 28,800-30,000 per quintal.
In absence of news from other origins like Brazil and Indonesia might limit the gains. Indian pepper in global market is quoted at $6900 per mt. As per trade sources, trend is also firm in Vietnam as they have sold around 50% of their production.
Vietnam pepper planters are holding back their produce anticipating further rise in the prices. As per derivative analysis, open interest in June contract has increased while prices and volumes have declined a bit. This indicates market is vulnerable to a smart recovery however; overall trend is likely to remain volatile.
Tuesday, May 17, 2011
Pepper price at record high in Kerala market
Kottayam, May 17 (PTI) Continuing its upward march, price of black pepper scaled a new high for the decade at Rs 292 per kg in the wholesale market in Iddukki district, a major producer of the food additive in the country.
The ungarbled pepper touched Rs 284 a kg while garbled variety closed at Rs 292 per kg yesterday and traders attributed supply shortage for the firming up of the price.
The previous highest pepper price was Rs 275 a kg recorded on November 1, 1999, traders said.
"If this trend continues, the price will soon touch Rs 300 per kg mark very soon," traders said.
They also said predictions of a slump in production this year by speculators was another reason for the sudden jump in the price of pepper.
In Kerala, pepper is mainly cultivated in Idukki and Wayanad district but farmers of late had been turning to other cash crops including rubber, cloves and cardamom due to un-remunerative price of pepper in the past several years.
Price of pepper was only Rs 161.17 per kg a year ago.
The area of cultivation had dropped steeply in Kerala from 2,37,998 hectares in 2005 to 1,72,764 hectares, sources said.
"But now farmers are gradually showing interest in pepper cultivation," traders said. Production was slightly higher in Tamil Nadu and Karnataka compared to Kerala, trade sources said.
(Source: http://news.in.msn.com/business/article.aspx?cp-documentid=5164635)
Chilli, turmeric fall on subdued demand
New Delhi, May 17 (PTI) Chilli and turmeric prices fell by up to Rs 300 per quintal in the national capital today due to subdued demand from retailers and stockists amid adequate stocks.
Red chilli and turmeric prices shed up to Rs 300 to settle at Rs 9,200-13,200 and at Rs 10,300-15,300 per quintal, respectively.
Market analysts said subdued demand from retailers and stockists amid adequate stocks mainly pulled down the chilli and turmeric prices in the wholesale kirana market here.
Following are today''s quotations in Rs per quintal:
Ajwain 17,500-23,000, black pepper common 28,800-30,000, betelnut (kg) 110-120, cardamom brown-Jhundiwali (kg) 980-1,000, and cardamom brown-Kanchicut (kg) 1,100-1,250.
Cardamom small (kg): Chitridar 730-750, cardamom (colour robin) 710-750, cardamom bold 720-750, cardamom extra (bold) 990-1,050 and cloves (kg) 500-570.
(Source: http://in.news.yahoo.com/chilli-turmeric-fall-subdued-demand-094500920.html)
