Most Spices Fall On Weak Demand

Most of the spices dropped on NCDEX in today's trading session on profit taking triggered by weak demand and arrivals pressure. Pepper dipped on selling at higher levels amid technical cues. During April-February 2010-11, a total quantity of 16,600 tonnes of pepper valued Rs. 334.62 crores was exported as against 18,425 tonnes valuedRs. 293.00 crores of last year. As per the latest updates from the General Statistics Office of Vietnam, Vietnam exported nearly 42,000 tonnes of pepper valued $213 million during the period of January to April 2011. Pepper for the May delivery on NCDEX ended the session lower by 1.50% at Rs. 28911 after hitting the low of Rs. 28860 per 100 kg. The open interest added 1.15% to 8069 tonnes.

Jeera futures dipped on weak demand. Jeera exports were dropped by 38% to 27,500 tonnes while value gained by 48% to Rs. 33,372 lakhs. Jeera for the May delivery on NCDEX ended the session lower by 1.28% at Rs. 14,690 and the open interest dipped 7.05% to 15747 tonnes.

Yellow spice declined on weak demand amid higher production estimation. Turmeric production in 2011 is estimated around 65 lakh bags against 45-48 lakh bags last year (Each bag=70Kg.).As per the latest release from the Spices Board of India, exports of turmeric were down around 9% to 42,500 tonnes during April-February 2010-11. May turmeric futures on NCDEX ended the session lower by 1.44% at Rs. 8500 after hitting the low of Rs. 8440 and the open interest dipped by 1.30% to 13740 tonnes.

Adequate stocks position in the physical market following increased arrivals from producing belts also put pressure on cardamom futures prices. According to trade estimates production in India is slightly higher than 11000 tons. As per the release from the Spices Board of India, during April-February 2010-11, a total quantity of 865 tonnes of cardamom (Small) valued Rs. 100.41 crores as against 1765 tonnes valued Rs. 143.62 crores of last year. As per the estimates of spices board the production in Guatemala expected near 20000 tons. And approximately 90 percent of the harvesting from Guatemala is harvested between October to April period.

As per the latest updates from the Spices Board of India, the average prices of cardamom in the auction held at The Cardamom Processing & Marketing Co-Operative Society Ltd, Kumily on Wednesday (as on 4th May 2011) stood at Rs. 744.01 and maximum price was at Rs. 1077 per kg. The arrivals and offtakes stood at 38915 and 38915 kg respectively. The average prices in the previous auction were Rs. 783.26 per kg, meanwhile arrivals and offtakes stood at 44761 kg and 44480 kg respectively. MCX cardamom for the May delivery ended the session lower by 2.61% at Rs. 917.10 after hitting the low of Rs. 913.40 and high of Rs. 947.00 a kg.

(Source: http://www.indiainfoline.com/Markets/News/Most-Spices-Fall-On-Weak-Demand/3684097109)