Indian Yellow Spice Futures Swell Over 3 % On Strong Demand, Short Covering

Indian Yellow spice futures swelled more than Rs. 300 or 3.37 % over the last close triggered by strong spot demand amid steady arrivals in the local markets. Continued short covering in the futures at lower levels also supported the futures to gain sharply in the early trading session.

Indian Yellow spice futures slumped to the low of Rs. 9230 as on 02nd February 2011 from the high of Rs. 10,960 per 100 kg in the month of December as selling were triggered by higher production estimation.

NCDEX Yellow spice for the April delivery swelled by Rs. 334 or 3.37% to the session high of Rs. 10,2260 and the open interest dipped 7.73% to 6020 tonnes and the volume traded as of now stood at 3,765 tonnes. The open interest dipped by 17.70% to 6,020 tonnes from 7,270 tonnes on second February 2011.

Turmeric arrivals in the benchmark Nizamabad mandi was around 8,000 bags with prices quoting at Rs. 11,500 per 100 kg, down Rs. 100 per 100 kg.

The arrivals in Erode in the state of Tamil Nadu stood at 12,000 bags and prices quotes at Rs. 11,500 per 100 kg. Meanwhile, prices quoted at Rs12,000 per 100 kg in the Salem mandi.

In the Nanded mandi of Maharashtra, select quality quoted at Rs. 12,500 per 100 kg and the Powder quality quoted at Rs. 11,500 per 100 kg. Rajpuri quoted at Rs. 13,000-14,000 and desi Kadappa quoted at Rs. 12,500 per 100 kg in Sangli mandi.

Traders expect production to range between 65- 70 lakh bags over the last years 48 lakh bags last year (1 bag = 70 75 kg).

During April-December 2010, Turmeric exports dipped by 13% to 35,500 tonnes while value surged 77% to 50,947.05 Lakhs.

(Source: http://www.indiainfoline.com/Markets/News/Indian-Yellow-Spice-Futures-Swell-Over-3-percent-On-Strong-Demand-Short-Covering/3565762277)